Daily Times

KARACHI: Subtle increase in gold price on back of improved hedging and composite gold Futures and speculation on output in international and domestic market kept yellow metal price in green, metal traders said.

Demand of gold also improved slightly on investors’ demand in the country following demand in international market, the gold traders said.

According to them spot gold was quoted up by $2 an ounce to settle at $1,231 an ounce.

On Monday, the bullion price in Karachi recorded a rise of Rs 68 per ten gram to Rs 41,484 per ten gram. In per tola term, gold prices witnessed an increase of Rs 79 a tola to close at Rs 48,335 per tola.

Similarly gold prices in Lahore and Hyderabad stood Rs 41,460 per ten gram and Rs 41,400 ten gram, prices remained around at Rs 41,54 per ten gram in Faisalabad, Islamabad and Multan, they added.

Humayun Ahmad Mani, senior member of All Pakistan Gems Merchant and Jewellers Association attributed the hike in gold prices to the boost by continued strong investors’ demand and rising inflation fears.

Mani said, however cautious buying kept goldsmiths and jewellery sector from making hefty deals.

Lower oil prices would normally turn sentiment against gold and Dubai’s upbeat gold imports do little lasting impact on gold sentiment.

He said Dubai was hub of gold trading activities and it was expected that gold prices in local market would further increase to Rs 300 to Rs 400 per gram.

He said increase of gold jewellery export to United Arab Emirates and the United States was likely to increase over 3 percent if the prices of gold remained stable. According to World Gold Council Pakistan is the 10th gold importing nation across the world, which has also enhanced the value-added products and gold jewellery in the country.