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Gold jumps to Rs60,300 per tola

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PESHAWAR (APP) - The gold price rose to a fresh record high on Wednesday, with per tola rate increasing to Rs 60,300 in the Sarafa markets.

According to statement of Sarafa Association, the gold prices registered increased in the whole country. During one week, price of one tola gold has increased by Rs 3900 in the local market. Sarafa Association said that there were chances of further increase in bullion rates in the coming days.

Reuters adds from London: Gold steadied on Wednesday, helped by investor unease over the resolution of the euro zone crisis after a Franco-German summit yielded no lasting solution to the regional debt problem, while a pickup in equities denoted improving risk appetite.

Equities and the euro pared earlier losses made after a hotly anticipated summit between French President Nicolas Sarkozy and German Chancellor Angela Merkel did not deliver the decisive solution to the euro zone debt crisis.

Data on Tuesday showing growth in Germany — the euro zone s largest economy and biggest creditor — virtually stalled in the second quarter heightened the deep-rooted concern over the impact of the debt crisis to the region s economy. Spot gold was last up 0. 1 percent on the day at $1,787. 39 ounce by 1220 GMT, about 1 percent off last week s record $1,813.

 When gold went to its highs, it wasn t just the euro zone crisis, it was also gloom and doom about the U. S. economy.

and some of that has lifted somewhat, said Mitsubishi analyst Matthew Turner.

 It s a currency story, in the sense that all currencies with the notable exception of the yen and the Swiss franc, are seen as weak, and the strength of those two is seen as being at the mercy of government policy.

 But it s not a currency story in the sense of day-to-day relative changes. Gold s move has been swamping that kind of currency move. They matter at the margin, but it s not the major driver at the moment.

On a weekly basis, gold in Canadian dollars has performed the strongest , rising by more than 13 percent, followed by gold denominated in Swiss francs , which has risen 8. 20 percent, as the Swiss currency has been shaken by the increasing efforts of the Swiss National Bank to tame its strength.

 Should effective measures eventually be undertaken to stem CHF appreciation, this would certainly be gold-positive, however, said UBS strategist Edel Tully, in a note.

 

Courtesy: Nation

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