KARACHI, July 22: Gold price hit a record high of Rs22,414 per 10 grams on Tuesday from Rs22,285 on Monday following rising gold prices in world markets.

The per tola gold rate surged to Rs26,150 as compared to Rs26,000.

However, on the import side, arrival of gold through legal channels fell by 95 per cent in terms of quantity and 89 per cent in terms of value in 2007-2008 as compared to 2006-2007.

According to Federal Bureau of Statistics (FBS) figures, a total of 1,052kg of gold worth $24 million arrived in the outgoing fiscal year as compared to 24,369kg worth $224 million in 2006-2007.

Pakistan’s export of jewellery went up by 382 per cent to $203 million in 2007-2008 as compared to $42 million in 2006-2007.

Gold in world markets hit $973 from $966 per ounce on Monday.

All-Karachi Jewellers Group President Haji Haroon Rashid Chand said: Had the rupee not recovered slightly in the currency market against the dollar on Tuesday, the domestic rate would have been much higher.

As long as crude oil prices continue to go up, price of gold would remain under pressure in world market, he said, adding, rising tension between US and Iran was another factor behind increased rates.

He said that gold in Pakistan is cheaper by Rs200 per tola (without duty) than in Dubai.

Gold imports have been at the bottom for the last two-and-a-half years since the imposition of one per cent withholding tax and 50 cents per tola duty.

Although it was the peak marriage season, gold dealers had been facing a slowdown in the sale of jewellery sets.

He said many families now prefer buying imitation and artificial jewellery sets on weddings and on Valima receptions owing to uncertain law and order situation.

Besides, the rising prices of commodities have virtually tarnished hopes of consumers, thus forcing them to restrict their buying on non-essential and luxury items.

He added that investors had been active in gold investment after uncertain situation at the stock exchanges.