KARACHI, Oct 26: The local gold prices on Friday hit a record peak level of Rs15,130 per 10 grams on the back of rising international prices.
Currently, the per tola rate of gold now stands at Rs17,650 as compared with Rs16,300 in the third week of September.
On Sept 1, gold tezabi was quoted at Rs13,202 and Rs13,020 per 10 grams on Aug 20.
In London bullion market, the spot gold price on Friday was quoted at $777 per ounce as against $739 an ounce on Sept 21. A few days back it was $765 per ounce.
Bullion prices have been under pressure in the world markets due to dollar’s continued weakness against the euro followed by tension between Iraq and Turkey, US sanctions on Iran, fears about the health of the US economy and rising crude oil prices.
The heating up of gold prices has really proved a disadvantage for those who have just started ready buying of gold jewellery or have started booking late in anticipation of a price fall.
This is the peak marriage season after Eidul Fitr and will persist till Eidul Azha in December.
Later, the season will again boil up after Eidul Azha and end before the start of first Muharram.
Chief Executive of Almas Gems and Jewellers at Zaibunisa Street, Saeed Mazhar Ali, said spot buying of gold jewellery has slowed down as customers become conscious or expecting price drop. Besides, people, interested in investing in 10 tola gold bars, have also restricted their buying since rates have been moving up persistently.
Only those people are seen in the shops who have to take delivery of their previous bookings.
Buyers usually book the gold jewellery one-and-a-half month earlier before marriage.
He said gold imports have already been suspended since the continuous increasing trend in bullion rates in international markets.
President, All-Sindh Saraf and Jewellers Association (ASSJA) Haji Haroon Rasheed Chand said global yellow metal prices are surging because of heavy investors’ buying in gold in world markets.
The losing strength of dollar against Euro has shifted many investors towards gold, besides people lift gold for safe heaven purposes in times of crisis.
In Pakistan, there have been more sellers of gold bars and even jewellery in order to cash in on the situation as they had purchased it when rates were lower.
The spot buying of gold jewellery has come down by 50 per cent as people have adopted a wait and see attitude, Chand said.
New spot buyers and even people who are booking these days are now paying Rs1,000 per tola more as compared with Ramazan, he said.
He predicted gold to touch $800 per ounce in case various issues on international front continue to exist in future.
He recalled that last year global gold prices hit the highest level of $759 per ounce while tezabi gold (10 grams) touched the peak level of Rs14,400, while gold per tola rate was Rs16,600.
He said official gold imports had been very negligible for the last one-and-a-half years due to imposition of one per cent wealth tax at import stage in 2005-06 budget paving the way for smuggling of the yellow metal from Dubai.
According to the Federal Bureau of Statistics (FBS), gold imports had dropped by 33 per cent and 61 per cent in terms of quantity and dollar value in 2006-07.
Imports stood at 24,168 kg ($224 million) in 2006-07 as compared to 35,887 kg ($567 million) in 2005-2006.
In July-August 2007, gold import recorded at 260 kg ($5.133 million) as compared to 1,135 kg ($21 million) in July-August 2006, showing a decline of 77pc in quantity and 75pc in value, respectively.
Gold imports used to cost only Rs32 per tola, including import duty and income tax, ahead of announcement of budget 2006-07. After the imposition of one per cent wealth tax, the cumulative impact of duty and tax had surged to over Rs200 per tola, he said.
