Gold prices climb to Rs41,014 per 10 grams

Precious metal no longer undervalued in local market.

KARACHI:

Gold prices skyrocketed to a fresh peak on Monday, crossing the Rs41,000 mark to close at Rs41,014 per 10 grams.

The tola (11.7 grams) rate of the precious yellow metal was up by Rs200 over the weekend at Rs47,850.

In just a matter of 10 days, gold prices have jumped by over Rs1,000 as international market volatility directly impacted the local bullion value. This was also the sixth consecutive rise for the precious metal.

All Pakistan Supreme Council of Jewellers Association President Haroon Chand said that gold prices would rise further in coming days, adding the local value of bullion had finally come in line with the international market and was not undervalued anymore.

Referring to the market situation, the expert said that customers were few and gold jewellery dealers were worried over the future of their businesses. “Local investors are also not demanding gold as compared to foreign investors,” he said.

In the international bullion market, gold prices surged $12 to $1,517 an ounce on Monday, a new lifetime best. Bullion prices rose due to a weak dollar, eurozone debt concerns and the Middle East political crisis.

Interestingly, silver also touched a record high in the international market when it hit $49.20 an ounce. Silver prices had been toying with 31-year highs for the past several days and finally broke the barrier after over three decades. In the local market also, silver touched a fresh peak at Rs1,440 per 10 grams.

Published in The Express Tribune, April 26^th, 2011.