KARACHI, Dec 19: Domestic gold prices surged to current year’s all time high to Rs6,495 per 10 grams, from Rs6,387, up by Rs108 in just one day as a result of persistent increase in global prices.

Rising war jitters further pushed up international gold prices to $347.50 per ounce on Thursday from $341-342 on Wednesday, thus making a direct impact on local gold prices.

Local gold prices have seen a jump of Rs443 per 10 grams from December 1 (Rs6,052) to the Thursday’s price of Rs6,495. A gold bar of 10 tola now costs Rs75,000 as compared to Rs70,000 on Dec 1.

Consumers, in a hunt for gold jewellery, are at disadvantage these days as the rising prices have mounted extra pressure on their fixed expenditure for gold buying.

The government has already lifted the ban on serving meals in wedding and valima receptions last month and sizable amount is required to arrange such lavish receptions. It means that people have now to manage a delicate balance on the expenses between the two unavoidable trends of wedding.

Conflicting views emerge over the buyers’ presence in the markets as some says that gold demand still looms large in the ongoing wedding season despite frequent price hike and people are still busy to manage jewellery sets as a financial assets for their bride.

However, senior vice chairman of All Pakistan Jem Merchants and Jewellers Association (APJMJA), Raisuddin Shaikh offers a different view, saying that market lacks demand for thin presence of buyers. “People are now opting to give cash to the brides instead of spending huge amount to buy gold jewellery and ornaments as they have to meet the huge expenses of serving meals,” he said.

Answering a question why jewellery shops in main markets are attracting a sizable number of buyers these days if demand is lacking, he said “majority of them are not buyers as the rising price has affected the consumers’ budget for gold jewellery purchases.”

Bullion dealers say that gold prices will remain under pressure till the US-Iraq war clouds are not over. In western countries, fear of war is luring more investors to pile the precious yellow metal for safe haven purposes in trouble times. At a time when dollar is getting weaker, oil prices are rising and equity markets are falling — foreign investors see gold as the last hope of financial assets.

Plunging value of dollar in Pakistan against the rupee has offset the full impact of rising world prices. Key players in gold markets have already suspended the imports.