KARACHI, July 19: Rising international gold prices continued to make an impact on domestic gold rates which hit a new record peak of Rs51,150 per tola, up by Rs300 as compared to the rate prevailing on Saturday.According to rates issued by the All-Sindh Sarafa Association, a jump of Rs257 was recorded in 10 gram gold rate which rose to Rs43,842 on Tuesday as international gold was traded at $1,605 per ounce.

On July 1, the per tola rate (11.664 grams) was Rs48,700 followed by 10 gram rate at Rs41,742 and $1,493 per ounce in world markets.

According to Federal Bureau of Statistics (FBS), gold imports plunged to 2,816kg ($109.6 million) in July-June 2010-2011 as compared to 4,779kg ($139 million) in the same period of last fiscal year.

Export of jewellery plunged to $404 million in July-June 2010-2011 as compared to $638 million the corresponding period of last fiscal year.

Due to surging gold prices, investors continue to show interest in gold trading at Pakistan Mercantile Exchange Limited (PMEX).

An official said that volume of trade in gold in 2010-2011 reached Rs312.7 (1279718 lots) as compared to Rs57 billion (313886 lots) in 2009-2010.

He said traders playing in future trading at PMEX include mix of gold market people and investors looking for inflation hedge and price escalation. He added that most of the PMEX clients are individual investors.

Gold import is not feasible as yellow metal is selling under cost in Pakistan by Rs400 per tola as compared to rates prevailing in Dubai and Saudi Arabia.

Exporters usually import gold for export of jewellery and later they will have to import fine gold from abroad within 180 days.