Gold hits new record of Rs46,000 per tola

Unrest in Afro-arab world cited as reason.

KARACHI:

Gold prices touched a new high of Rs46,000 per tola (11.7 grams) on Monday, as political trouble in the Middle East and North African (MENA) region intensified.

The precious yellow metal peaked at Rs39,428 per 10 grams. Gold previously reached record levels was on January 3 this year when it closed at Rs39,257 per 10 grams and Rs45,800 per tola.

All Pakistan Supreme Council of Jewellers Association President Haroon Chand said that local gold prices have spiralled due to rising prices in the international market, as foreign investors were buying the precious metal for safe-haven investment.

Geopolitical fallout in the MENA region and fears of potential disruption in oil supply have pushed crude prices well above $100 per barrel in recent days, heightening inflationary fears.

Chand said that local investors were, however, unresponsive to the volatile rates and there had been no purchasing or selling in the bullion exchange. He predicted gold prices to rise further in coming days.

In the international bullion market, spot gold came within a whisker of a new record, hitting an intraday high of $1,439.58 per ounce. The current record stands at $1,440.40, hit last Wednesday (March 2), thebulliondesk.com reported.

Published in The Express Tribune, March 8^th, 2011.