Gold climbs further

Gold prices rise by Rs129 to reach fresh peak of Rs39,257 per 10 grams on Monday.

KARACHI: Gold prices rose by Rs129 to reach a fresh peak of Rs39,257 per 10 grams on Monday, against Rs39,128 on Saturday. Gold had earlier been undervalued in Pakistan and Monday’s price hike brought it at par with international rates, gold dealers informed The Express Tribune.

The precious yellow metal was valued at Rs45,800 per tola (11.7 grams), up by Rs150 over the previous high. Gold dealers of the KDA market said that customers returned to gold markets as wedding season is going to start after the month of Muharram which is coming to an end.

They said that while many consumers still preferred artificial jewellery over ‘real stuff’ due to gold’s high rates, many parents continued to purchase gold sets for their daughters to wear on wedding day.

Dealers also informed that compared to last year, the weight of gold jewelleries that customers asked for had reduced considerably.

They said that while jewelleries weighing four to five tola had been a norm earlier, parents now prefer more affordable jewelleries in the range of 1.5-3 tola.

Meanwhile, All Pakistan Supreme Council of Jewellers Association President Haroon Chand said that gold prices are expected to rise further as both international and local investors are buying precious metal actively.

In the international bullion market, gold remained stable at $1,421 an ounce on Monday.

Published in The Express Tribune, January 4^th, 2011.