Gold prices reach new peak

Rising trend expected to continue despite drop in demand.

KARACHI:

Gold prices continued to surge in the domestic market, being recorded at Rs41,657 per 10 grams on Friday, up Rs172 from the previous day’s rate of Rs41,485. The per tola (11.7 grams) rate was recorded at Rs48,600, up from Rs48,400.

Speaking to The Express Tribune, All Pakistan Supreme Council of Jewellers Association President Haroon Rashid Chand informed that gold prices are expected to continue rising, despite potential customers backing away from purchases in recent days and investing in silver instead.

Prices have been on a constant rise in the domestic market, increasing by Rs2,400 per 10 grams in April alone, and have taken the precious yellow metal out of most consumers’ purchasing power.

The jump in prices is in line with the trend in the global market, which saw historic highs on Friday. The international price of gold increased from $1,534.73 per ounce on Thursday to $1,537.

Analysts expect further gains in the coming days, as the supportive macroeconomic and geopolitical backdrop look set to continue. “The prospect of low interest rates and higher inflationary expectations in the US, coupled with ongoing issues such as the unrest in Middle East and North Africa continue to create a bullish environment for bullion,” said FastMarkets analyst James Moore.



Published in The Express Tribune, April 30^th, 2011.