Gold hits new high of Rs39,550 per tola

KARACHI - The price of gold in the local market increased by Rs960 on Tuesday and reached record high at Rs39,550 per tola after its price in the international market rose to an all-time high point above 1,250 dollars an ounce due to massive reduction in Euro value in the international market. According to the chairman of the All Sindh Sarafa Jewelers Association Haji Haroon, the international prices are expected to increase further to about $1,300 per ounce during this month as Euro is facing devaluation rapidly due to the currency crisis. He said that the peoples trend of reserving is rapidly changing towards gold as compared to the property and other currencies. The prices are expected to increase further because of depreciation of Euro in the international market. It will decrease further with impact of gain in the gold prices around the world. However the gold will also decrease to some extent but the future for gold prices is very bright, he added. Haji Haroon pointed out that India and China are planning to convert their foreign reserves into gold, as they are purchasing the gold at very high rates. Moreover Sri Lanka has also made orders recently to purchase this, he added. Market sources said that the price of the gold per 10 gm has increased by Rs 815 to Rs 33,857. It is pertinent to mention here that this type of record high of gold prices was also seen in 2009 when 10 gm gold price increased to Rs33,342 while its price of per tola reached Rs38,900.