Gold hits high for fourth day in a row

KARACHI: Gold prices reached a fresh peak for the fourth consecutive day on Saturday as 10-gram rates rose by Rs86 to Rs36,514 while per-tola (11.7 grams) rates increased by Rs100 to Rs42,600.

Gold prices continued their upward march due to international volatility where rates peaked at $1,320 an ounce. The world market was supported by the weak dollar which fell to its lowest levels since January against a basket of currencies, partly on speculation that the US central bank will ease monetary policy further to stimulate the economy, said thebulliondesk.com.

“Gold is not at its top yet, and $1,300 an ounce, the old resistance level, is now a support level,” said the Bloomberg website. Gold has gained 20 per cent this year and it is headed for the 10th straight annual gain, the longest rally since 1920, the website said.

A day earlier, the main Bullion Exchange and major gold markets of Sindh had remained shut in protest against extortion. “No notice has been taken as yet by the government but we will continue to appeal until our voices are heard,” said a gold dealer.

In the local market, the precious yellow metal surged by Rs343 per 10 grams this week. Some interest and buying was noted in the gold market, particularly in Punjab by investors. However, dealers said that jewellery purchase continued to remain limited as consumers were looking for alternatives.

Published in The Express Tribune, October 3^rd, 2010.