Gold touches new record

KARACHI: Gold has hit a fresh record after rising by Rs275 to reach Rs40,550 per tola (11.7 grams) on Thursday. The surge comes on a day when the dollar was weak, easing in commodities as an alternate safe haven in foreign markets. The ten-gram rate of the metal went up by Rs236 during the day to settle at Rs34,757.

Gold expert and dealer Hanif Chand said that the international bullion market had influenced the local market. Gold is likely to continue its longer-term uptrend on the back of demand for safe investments, he forecast.

Mohammad Khurram, another gold dealer, said that while a lot of people were selling gold there were only a few buyers. He pointed out that people now preferred to buy 12-carat gold over other varieties as it was comparatively affordable.

“More people are demanding 12-carat gold now, while previously 21-carat and 22-carat gold items were more popular. This is because, for example, a 1.5 gram 21/22 carat ring can cost anything between six to seven thousand rupees depending on its make and design, a 12-carat ring can be purchased for as low as Rs3,000,” he explained.

In the international bullion market, gold was priced at $1,273 an ounce – an all time high. The value is expected to cross the $1,300 mark in coming weeks, the bulliondesk.com reported.

Published in The Express Tribune, September 17^th, 2010.