KARACHI, Jan 25 Gold price hit a record peak of Rs18,170 per 10 grams on Friday pushing up the one tola gold rate to Rs21,200 following continued upsurge in yellow metal in world markets. The 10 tola gold bar is now priced at Rs213,000.

The world gold rates touched $923.73 per ounce after showing continuous rising trend for the last several months. These rates were $785 per ounce on December 1, 2007.

In 2006 global gold prices had hit the highest level of $759 per ounce while tezabi gold (10 grams) touched the peak level of Rs14,400. The per tola gold rate was Rs16,600. In 2007, bullion rates made several highest records.

All Pakistan Gem and Jewellers Merchants Association chairman Saeed Mazhar Ali told Dawn that the marriage season had been slow after Ashura and the peak season will kick off after Chehlum of Hazrat Imam Hussain (RA) and it will gather further momentum with the advent of Rabi ul Awwal.

The sale of gold jewellery sets presently is only 50 per cent and it will pick up after Chehlum but not very substantially, he opined.

He said that the people having limited budget must be facing problems in buying jewellery sets as they either have to manage extra money or may opt for purchasing sets with less weight.

He said that the gold prices in world markets had risen because of renewed interest of stock market players in gold after worldwide crash in stock markets recently. Besides, the weakening US economy and its currency have forced the investors to find new investment options, he said, adding that the gold prices go up with every increase in crude oil prices.

In Pakistan, investors have been active in lifting gold bars of various sizes after losing hopes in currency, turbulent nature of stock markets and bearish trend in property markets for the last two years, he said adding that the investors now fully know that gold is emerging as the safest investment and its price will continue to increase in future.

Local gold prices had gone up by Rs6,000-7,000 per tola since Ramazan, President of All Sindh Sarraf and Jewellers Association Haji Haroon Rasheed Chand said.

There has hardly been 30 per cent sale of jewellery after Muharram and even for the last one year it has remained laggard owing to rising trend in the prices of essential items.

He added that many people preferred to convert their old ornaments into new ones after mixing. Many people had also opted for giving low-weight jewellery sets on their daughters` wedding.

It has been noticed that due to rising incidents of snatching of gold sets outside marriage halls many families now prefer adorning brides with artificial jewellery on wedding days.

He said gold imports had been at the bottom owing to rising prices coupled with imposition of tax and duties on imports. The cost of gold imports was just Rs32 per tola, including import duty and income tax before the 2006-07 budget, but after the imposition of one per cent wealth tax the cumulative impact of duty and taxes had surged to over Rs300 per tola.

He claimed that the gold in Pakistan was selling under cost and it was cheaper by Rs500 per tola as compared with rates in Dubai.