Gold prices touched new peak level on Wednesday appreciating by almost Rs 120 per 10 grams after international gold prices reached new heights. The prices in Karachi gold market on Wednesday increased to Rs 8,246 per 10 grams from Rs 8,126 of Tuesday following a sharp rise in international gold prices which touched $422 per ounce on Wednesday, increasing by almost $5 per ounce from a day back.
"During last six days, gold prices have been showing erratic movement when they dipped to a low of Rs 8,058 per 10 grams and touched the high of Rs 8,182 in the local market following sharp rise in international market", a gold trader said.
However, the prices also witnessed rise when the local currency weakened against dollar in the last three sessions. The rupee started its journey from Rs 59.75 to a dollar and oscillated to Rs 60.75 to a dollar during the last three working days.
International gold prices had touched a high of $423 per ounce last week but from the start of current week international prices had eased to $414.75 per ounce on Tuesday. Gold lost $9 per ounce during last six days. But once again the gold prices are on the rise and have touched new high. The prices will go haywire as the reports indicate that prices in international market have crossed $426 per ounce mark in New York market.
"Local gold prices have increased due to rising prices in the international market," a gold trader said. He said traders are avoiding import of gold for the last six months as international gold prices are not affordable for local traders.
Some traders said current rise in gold prices did not have any major impact on gold buying in the local market as sales of jewellery has already hit lowest ebb in the local market. "In my view, investors have actively started accumulating dollars following a steep decline in the value of rupee, real estate and stock business," one trader claimed.
The value of rupee since January has weakened by over 4.7 percent, property prices have been doubled, or in some areas tripled, while stock prices have shown a steady growth and are up by around 18 percent.
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