Daily Times

KARACHI: Yellow metal price sustained firmness on back of improved hedging interest and gold Futures speculation in international and domestic market, the yellow metal traders said.

According to them spot gold was quoted at $1,257 an ounce up by $1 an ounce. It touched a trading session peak of $1,258 an ounce.

The bullion price in Karachi recorded a rise of Rs 93 per tola to Rs 49,384 per tola. Similarly gold prices in Lahore and Hyderabad stood Rs 49,091 per tola and Rs 48,967 per tola. In grammage term, gold price increased by Rs 80 to close at Rs 42,384 per ten grams, they added.

A senior member of All Pakistan Gems Merchant and Jewellers Association attributed the steadfastness in gold prices to the long term trading in international market and boost by domestic market on investors’ demand and rising inflation fears.

The international prices of gold surged more than 16 percent in 2016-17 and have almost doubled in ten years, kept goldsmiths and jewellery sector from hefty buying.

However, the escalation of gold prices in the local markets is not proportionate with the upsurge in international markets, he said. This is because the demand for gold declines locally whenever it turns dearer globally. He said gold prices could drop further before marching towards this month’s peaks.

He said Dubai was hub of gold trading activities and it was expected that gold prices in local market would further increase to Rs 250 to Rs 350 per 10 grams.

He said increase of gold jewellery export to United Arab Emirates and the United States was likely to increase over 5 percent if the prices of gold remained stable.

Buyers made deals according to their immediate needs. Local trading in gold remained dull on back of insignificant buying.