Yellow metal price remains strong amid firm demand

Yellow metal price remains strong amid firm demand

KARACHI: Gold prices are maintaining upward trend and are expected to rise by Rs 600 to Rs 900 per 10 grams during next trading month on improved demand.

Due to hike in international gold markets, domestic market also shred the rise I line with the rupee-dollar parity, metal dealers said.

They said the real increase in gold prices would come next month when gold demand is expected to increase on demand for jewellery after Eid wedding season.

Gold closed at $1,261 per ounce in international market scoring high of $10 an ounce for the third day running, with the market poised for more gains.

In domestic market yellow metal price increased by Rs 342 per tola to close at Rs 49,494 per tola while in grammage term, it rose by Rs 293 per ten grams to Rs 42,478 per ten grams, bullion market dealers said.

Analysts and traders say expectations of further inflows of demand with the imminent release of a new exchange-traded gold fund in New York were also enhancing gold's allure.

Local dealers say the domestic gold prices are rising in line with the trend of global gold markets. But, the increase is usually not as much as takes place internationally because people stop buying the metal when prices are too high.

However, traditionally the month after Eidul Fitr is the time when numerous wedding ceremonies occur. So there is more demand by the people for jewelry for personal use, and gifts and dowry to new couples that might take local prices to new highs.