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| News and Updates |
| Investors still eyeing gold - Sep 29, 2011 13:38:39 |
KARACHI: The investment in yellow metal incresaed by 12 percent in August 2011 to record 76 percent in eight months 2011, metal experts said on Wednesday.
The yellow metal hit record high above $1,800 an ounce in August after pledges by the G7 and the European Central Bank to quell the turbulence in the financial markets did nothing to put investors at ease.
Though the gold prices eased by $138 per ounce during 30 days but still international and domestic investors were eyeing on the yellow metal as it is the safest haven for investment besides high returns on investment and hedging became the driving force behind the rising prices of gold in the global markets.
A metal expert in London, Saleem Ahmad said after the Stanadards and Poors announcement of downgrading the credit rating of US from triple A to AA plus on weakening economic conditions and budget dificit, the yellow metal became a strong instrument for investors.
Ahmad said the gold market started it upward journey in 2011 on strong demand by India and China besides international debt issues.
Over the last one year, gold prices in India have risen by 35 percent, in Pakistan 49 percent and this has been attributed to the poor outlook for the global economy, the rising inflationary pressure.
The hedging incresed in Pakistan and in world markets on back of poor returns on bonds, no immediate signs of revival in the world largest economies and higher buying by China, India and some European countries.
Price of gold eased by Rs 450 per tola to stay at Rs 56,700 per tola while in international market it stayed at $1662 per ounce mark Wednesday, the metal expert said.
Ahmad said investment in gold was a regular practice as it always pays and it is on the cards that gold will keep even pace with an initial target seen at $2,000 per ounce on international demand by end 2011.
The yellow metal will still be in the eyes of leading buyers and hedge master around the globe including four big in Pakistan, he added. Gold prices in international market gained 8 percent in 2011, supported by investors and hedgers.
Due to poor returns on bonds the yellow metal has been alluring the investors, he added.
Traders said the small and medium sized gold traders would likely to slow down their business activities on its increasing price at the domestic as well as in international market.
The domestic sale of yellow metal registered a decline by around 82 percent in eight months 2011, though the demand was still there on wedding season but the customers curtailed volume of buying. |
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