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Gold trade suspended after global rally

KARACHI: Trade was suspended on Karachi's main bullion market on Monday after international gold prices hit a three-month high, dealers said.

They said several players still had to deliver on their commitments, adding settlement could take a day or two.

"We have to account for profit and loss after what has happened in the international markets. It may take a day or two for us to restart trade," said a spokesman for the Karachi Jewellers and Sarafa group.

Local prices have jumped over eight percent to 5,487 rupees per 10 grams in unofficial trade since Saturday, dealers said.

Spot gold reached a high of $318 a troy ounce in Asia before dropping back to around the $314 in early Europe, four percent up on the New York close of $301.80/$302.60.

Dealers said the move by Canada's Placer Dome Inc. on Friday to suspend its hedging programme prompted panic buying in international markets.

In October last year, a similar rally, sparked by a decision by European central banks to limit gold sales, triggered a global rally and forced the suspension of gold trade for a week in Pakistan, which has annual gold demand estimated at 100 tonnes.

Most gold traders use the kerb currency market to buy foreign currency to purchase gold, and the rupee was at 54.15 against the dollar in the kerb market against an interbank rate of 51.90 rupees.-Reuters