Gold surges to new record

Gold prices skyrocket to Rs42,200 per tola in just one day to reach fresh highs in the local bullion market.

KARACHI: Gold prices skyrocketed to Rs42,200 per tola (11.7 grams), a steep rise of Rs750, in just one day to reach fresh highs in the local bullion market. The precious metal also recorded a spike of Rs643 to close at Rs36,171 per 10 grams on Wednesday.

All Pakistan Supreme Council of Jewellers Association President Haroon Chand said that gold prices had been influenced by the international market, which also reached its peak at $1,309 an ounce. He said that a shaky US economy had put the entire global bullion trade in turmoil and prices were rising all over the world.

Furthermore, he said that heavy buying in foreign markets was the main reason that local prices had spiralled. Explaining, he said while most of the international market was buying gold bullion as a means of investment and safe-haven, the sub-continent and the Middle East saw heavy demand for gold jewellery as Hindu festival Diwali was approaching.

Chand said that on the contrary, Pakistani investors continued to shy away from making gold purchases, while those holding gold stocks were becoming richer day by day. The expert forecast gold would remain on the run, saying prices would rise by another 10 to 15 dollars before the end of the year.

Published in The Express Tribune, September 30^th, 2010.