KARACHI, Jan 8: Gold prices surged to an all-time high when trading resumed on Tuesday in the local market.

Influenced by the current wave of soaring prices in the world market, the precious metal was quoted at Rs17,100 per 10 grams (Rs19,950 per tola) at the close of trading.

In the world market, the yellow metal scrambled to $874 per ounce or $26 higher from overnight rate of $858.10 per ounce.

Although there was no worth-mentioning demand in the domestic market for the precious metal, particularly when marriage season before the month of Muharram is also over and because Pakistanis traditionally do not invest in gold, gold prices moved to an all time high at Rs17,100 per 10 gram in the Karachi market. Elsewhere in the country, gold was quoted at Rs17,057 per 10 grams.

Al-Haj Haroon Rashid Chand, president, All-Sindh Sarafa and Jewellers’ Association, told Dawn that presently there was hardly any import of gold from the Middle East, but prices in the domestic market normally move in sympathy with the world gold prices.

Consequently, he said Tuesday’s surge in prices was just an adjustment with world market rates.

The precious metal which once made its way in the country through unofficial channels also stopped its move because prices in the domestic market are not attractive and the high cost of the metal has made it out of the common man’s reach.

Mr Chand said the world gold and precious metal markets are presently under the grip of speculative buying and buyers and investors are trying to invest their idle funds in such commodities which could be a safe heaven in case of any further deterioration in oil producing Gulf region.

He apprehended that if the current situation lingers on for some time, the world gold prices may touch $900 market per ounce in coming months.

A major flow in government policy of imposing duty of $0.50 per tola and one per cent withholding tax on import of gold has crippled trade because high prices in the world market have already made the precious metal out of common man’s reach and lately demand had been dwindling even during marriage season.

“This is the right time the government should allow free trade in gold as it will only help to generate jobs and help people to earn their bread and butter, particularly when there is a dire need for giving jobs to masses,” he added. Like capital market, he said, gold is also a commodity which had been used as an investment mode.