KARACHI, Dec 5 After hitting a peak, the gold price for one tola had slipped by a record Rs1,250 per tola to Rs37,450 on Saturday in a single day session from Rs38,700 on Friday. On Thursday, it was Rs 38,900.

Similarly, 10 gram gold rate also plunged by Rs1,071 to Rs32,100 from Rs33,171. The massive single day fall of international bullion rate to $1,161 from peak $1,205 per ounce on Friday was the main reason of making a direct impact on domestic gold price.

In early January 2009, the one tola gold was available at Rs25,000 while 10 gram price was tagged at Rs21,432 and the yellow metal was trading at $870 per ounce in the global markets.

President, All Karachi Saraf and Jewellers Group Haji Haroon Rashid Chand, said reports that Federal Reserves may increase interest rates after fall in unemployment rate in November followed by gaining strength of the dollar against various currencies had made an impact on the world gold prices.

He was of the view that the gold prices may further fall next week as the US has been trying hard to rescue its falling economic indicators. He, however, added that the steps by the US for economic salvage may prove a short term measure since the superpower is more engaged in Afghanistan and some other issues.

He claimed after substantial decline in prices, the gold rate in Pakistan is costlier by Rs200-250 per tola than Dubai.

However, the fall of Rs1,250 on a single day might have provided some relief to on-spot buyers and also to those who had made advance booking for jewellery sets.

The current marriage season is going on and it will further pick up pace after Muharram.

Mr Chand was of the view that many people, looking for jewellery sets, would wait for further fall in gold prices. If gold price is compared with January 2009 this year, the price is still very high for those middle and lower income people who find it difficult in meeting the demand of daily use items whose prices have also gone up substantially in the last one year.

Chairman, All-Pakistan Gem Merchants and Jewellers Association, Saeed Mazhar Ali, said investors in the world markets and also in Pakistan may now indulge in profit taking by selling gold to avoid losses in fear of further decline in bullion prices.