KARACHI, Dec 17: Local dealers have suspended gold import for last two weeks following abnormal rise in international gold price. In last 24 hours bullion rates jumped by eight to nine dollars on an ounce.

Accordingly, local gold prices on Tuesday surged to Rs6,387 per 10 grams from Rs6,280 per 10 grams, up by Rs107, thus breaking the current year’s all time high record of Rs6,360 in June.

International gold prices touched to $341-342 per ounce from $333-334 per ounce in just one day owing to fear of war with Iraq. Three days back global gold prices were $326 per ounce.

Domestic gold prices in the current month have shown an increase of Rs343 per 10 grams. On December 1, it was Rs6,052.

“We have suspended our imports since the last 15 days due to rising global gold prices. Import is not feasible for us these days,” Chairman, All Pakistan Jem Merchants and Jewellers Association (APJMJA), Kamran Khan told Dawn, referring to gold import by only three main parties in Pakistan.

Besides Iraq-US war tensions, the current increase in gold prices can also be attributed to heavy retail buying in foreign countries on the eve of Christmas. Global investors in stock markets have shifted their interest towards the yellow metal. People playing in money market have also become active since dollar has started losing its charm against the Euro, he said.

Gold price will definitely plunge as soon as any positive statement arrives from the US, he added.

He dispelled the impression that market lacks any buyers’ presence due to higher prices. Kamran said that currently people are very much active in buying gold jewellery from local markets in the wake of current marriage season. The demand spurt in jewellery will maintain till the end of wedding season.

The sinking value of dollar against the rupee has kept the gold rates to some manageable levels under the current wave of rising gold prices in international markets, otherwise the local rates would have gone much higher.

The government has also simplified the procedure of gold import aimed at liberalizing the gold imports. Importers have been asked to arrange foreign exchange on their own for gold import.

“The free import of gold has not done any wonders in the last few months as only three parties are bringing gold by paying one dollar per 11.664 per gram and no gold has been imported by other importer,” Kamran said.

The government should come out with details as to how much foreign exchange has been collected so far after gold import liberalisation. Instead of bringing gold through legal channels, the yellow metal is finding way into the markets through smuggling, APJMJA chief claimed.