Gold prices have reached Rs 13,397 per 10 gram in the domestic market in the wake of upward trend in international market, and its import has come to a halt, traders said. "Gold price has been increased today by Rs 95 per 10 gram to Rs 13397 per 10 grams, the highest level so far, from Rs 13302 per 10 gram," they said on Wednesday.
Gold prices in the international also witnessed an increased of $2.50 on Wednesday. After this upsurge, gold was quoted at $699.50 per oz against $688 of Tuesday in the world market, they added. Traders expressed view that the ongoing US tussle with Iran was getting serious and could intensify further in the coming days.
The current upsurge in gold prices is due to slow gold imports and increasing gold prices in the international market, Haroon Chand, a leading gold trader, said.
He said that gold prices in the world market were rising due to the huge buying by Japan, China and Russia as a result of US-Iran confrontation. The huge buying by these three countries has created some gold shortage in the international market, he added.
He said that local gold prices were rising as legal gold imports have almost halted with 99 percent decline in February. He said now investors in gold are selling their holdings at higher rates, from which local gold demand is being met.
"We are expecting further rise in gold prices in near future and it is also expected that once again its prices would cross Rs 14,000 per 10 gram level," he added. He said that if the US-Iran tussle is resolved then gold prices might come down.
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