On a roll: Gold prices hit record high again

KARACHI: Gold prices continued their spree on Monday and hit another record high on the back of international prices.

Prices per tola (11.7 grams) of the precious metal rose to Rs61,400 on Monday, toppling the previous record of Rs60,600 per tola posted in the preceding week.

In other precious metals, prices of silver per 10 grams rose to Rs1,157.14.

Gold prices have hit 13 new peaks in the last two months on the back of surging global prices.

In the international market, prices retreated from early record highs near $1,900 an ounce on Monday, as a rebound in stock markets from last week’s lows gathered pace, denting interest in so-called safe haven assets like German bonds and bullion.

Spot gold was up 0.7 percent at $1,871.79 an ounce at 1353 GMT, having earlier risen as high as $1,894.10, building on its strongest one-week rise since Feb. 2009. It is one of this year’s best-performing assets, now up 31 percent.

Investors have flocked to the metal as a haven from the euro zone debt crisis, weakness in the US economy and volatility in the currency markets. However, analysts are worried that August’s near 15% rally has been overdone.

Published in The Express Tribune, August 23^rd,  2011.