Gold touches record Rs43,542 per 10 grams

Karachi, Hyderabad bullion markets closed following violence.

KARACHI:

Gold hit new lifetime peak at Rs43,542 per 10 grams on Thursday in all major bullion markets of Pakistan, except Karachi and Hyderabad where businesses remained shut throughout the day following violence and arson in several areas.

The precious yellow metal also inclined by Rs500 per tola (11.7 grams) to a new best of Rs50,800 the same day. Gold had gained momentum after approximately five weeks of stability just a day earlier on Wednesday, when it crossed Rs43,000 and Rs50,000 barriers for 10 grams and one tola respectively.

Karachi Saraf Association President Haroon Chand said that the main bullion exchange of the country in Karachi remained closed due to the sensitive condition of the city. However, he said that since other cities had been operating normally, gold was bound to gain value in accordance with international rates.

Chand said that gold prices in Karachi and Hyderabad will catch up with both national and global rates when they open for business. “I cannot say for sure that prices will level tomorrow [Friday] as I am not sure how the city conditions will be. We will open our shops when we are promised security. As it is we have suffered enough at the hands of extortionists and other factors such as power outages,” he added.

In the international bullion market, gold hit a fresh all-time high of $1,593.50 per ounce at one point but closed at $1,591.90/1,592.70, still up by $8.70. The precious metal has gained 3.2% since the start of the week on Monday, July 11. Gold edged to fresh all-time highs when the dollar softened against the euro.

Published in The Express Tribune, July 15^th, 2011.