KARACHI, May 23: Local gold price recorded a new height of the current year on Thursday, rising to Rs6,267 per 10 grams, from Rs6,232 on Wednesday, owing to, what bullion dealers said, increase in dollar rates in open market.

However, international gold prices plunged by around three dollars per ounce to $316 on Thursday, from $319 ounce on Wednesday.

No dealer was ready to offer any comment as to why global gold prices had fallen despite rising safe haven buying amid rising exchange of firing at the borders between nuclear-armed Pakistan and India followed by threat of fresh attacks on the USA and lingering Middle East tension.

According to a spokesman of Karachi Saraf and Jewellers Group (KSJG), dollar was available at Rs61.20 on Thursday as compared to 60.20 on Wednesday, which caused a flare up in domestic gold prices.

“The increase in gold prices has nothing to do with the price decline in international market. Increase in dollar rate has offset the impact of global gold price fall,” a bullion dealer said.

On Thursday — the kerb market was in state of confusion over a disparity of dollar buying and selling rates issued by Forex Association of Pakistan (FAP) and Khanani Kalia International (KKI). The rate issued by FAP was Rs61.10 and Rs61.20 for buying and selling as against the rate of KKI of Rs60.60/60.70 for buying and selling.

“The difference of 40-50 paisa in dollar rates might have created confusion in the market that is why bullion rates have been increased,” a gold dealer said.

He said people have already started making safe haven purchases soon after escalating Pak-India border tension. More buying in gold bars is expected in case the border situation gets further tense. Buying in gold bars may also pick up pace if more investors, who have lost their hopes on the stock exchange, turn up to quickly save their investment by piling up yellow metal in times of war-like situation.