Gold prices at new peak

Yellow metal crosses Rs40,000 mark.

KARACHI:


Gold prices on Saturday crossed the Rs40,000 barrier to reach a fresh peak of Rs40,028 per 10 grams, supported by the international market which also touched its lifetime best.


Gold was valued at Rs46,700 per tola (11.7 grams), up by Rs200. The previous high was reached on April 8 when the bullion rose to Rs39,921 per 10 grams and Rs46,575 per tola.


All-Pakistan Supreme Council of Jewellers Association President Haroon Chand said that even after crossing the Rs40,000 mark, gold was undervalued in the local market by Rs300. Compared to gold rates in the United Arab Emirates on Saturday, the precious yellow metal was cheaper in Pakistan.

However, gold rates are expected to rise in coming weeks, which may overcome the difference, asserted Chand. He said that local markets were unresponsive to the fluctuation in gold prices.

In foreign bullion markets on Friday, gold rose by $10 to $1,487 per ounce – a new lifetime high. Both gold and silver advanced to fresh highs due to a volatile global market, which saw the dollar reversing its gains against the euro, fears of rising prices across the globe exacerbated by figures from Beijing and fresh fears surrounding sovereign debt contagion in Europe.



Published in The Express Tribune, April 17th, 2011.
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