Gold prices hit fresh highs

KARACHI: Gold prices peaked at Rs34,800 per 10 grams after markets reopened on Saturday, in an attempt to catch up with record highs reached in the international bullion market on Friday.

The entire bullion market of Pakistan had remained shut on Friday owing to tense conditions in Karachi, following the assassination of Muttahida Qaumi Movement’s Dr Imran Farooq in London.

The precious yellow metal rose by Rs50 to reach Rs40,600 per tola (11.7 grams). Gold dealer and expert, Hanif Chand, said that the upcoming week may see prices crossing the Rs35,000 per 10 grams mark.

He said the market was cold and unresponsive as both dealers and consumers preferred to wait for prices to decline again. Chand said usually the two-three weeks after Eid are a wedding favourite, but despite that gold markets wore a deserted look.

In the international bullion market on Friday, gold prices struck record highs close to $1,300 an ounce as investors sought alternatives to the dollar amid heightened fears about the fragile state of US economic recovery.

Gold prices hit an all-time high of $1,282.97 an ounce on Friday, supported by a weakening dollar on mounting expectations that the Federal Reserve will pump more money into the flagging US economy. Gold this week broke June’s record of $1,265 an ounce.

“Gold is touching a new high while stocks are rallying because markets think the Fed will print more money before the end of this year just to ensure that the US economy remains on an even keel,” said analyst Neil MacKinnon at VTB Capital, AFP reported. The precious yellow metal closed at $1,274 an ounce for the weekend.

Published in The Express Tribune, September 19^th, 2010.