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Gold surges to record Rs.44,350

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Posted by on Friday, October 15, 2010, 10:52
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Gold prices hit a record high above Rs 44,350 per tola in the country after yellow metal touched highest ever price of $1,381 an ounce in international market, metal analysts said Thursday.

Gold surges to record Rs.44,350
Gold surges to record Rs.44,350

“Within a couple of weeks time, around Rs 1,245 per tola increase was recorded in the local bullion market while in dollar terms the increased is $88 per ounce”, importers said.

Gold prices in international market gained 18 percent in 2010, supported by investors and hedgers.

Gold lured investors on the back of better returns on securities and hedging of the dollar, Director Pakistan Gems and Jewellery Development Company (PJGDC), Shafi Choksi said.

He said, “China and India have sped up their respective buying which has made a difference in the market, besides new entrants in the gold market have also pushed its price at an all-time high”. Choksi said, “Hedging in yellow metal is still on the higher side as it touched a new high around 80 percent during September and two weeks of October 2010.

Prices of gold here are still lower than that of in Dubai and this discourages the import on domestic front, but still investors in international and domestic markets seek an alternative to volatile currencies, equities and some sovereign bonds as economic data has cast doubt on the global growth outlook.

The increase in hedging is attributed to the falling share markets and concerns over the outlook for the US economy, he maintained.

He said gold’s attraction as an alternative investment has helped boost price by over 20 percent from January to mid September 2010 while it gained around 23 percent in 2009.

He said the domestic sale of gold registered a decline by around 70 percent in September 2010, though the demand was still there on wedding season but the customers curtailed volume of buying.

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