KARACHI - The prices of gold are likely to shoot up as the buyers have thronged the local jewelry markets during the ongoing wedding season.



According to market sources, the gold prices will see a sharp increase of at least Rs5,000 per tola (12 ounce) as the United States is stretching its military muscles to invade Syria for the latter allegedly having used chemical weapons against the Sunni rebels resisting the decades-old dictatorship.



Also, the fresh $6.64 billion IMF program, which envisages Pak Rupee further depreciating against the dollar by Rs110, is expected to jack the local gold prices up in the moths ahead.



According to traders, the US’s indecisiveness to attack Basherul Asaad regime coupled with the Federal Reserve Committee’s (FRC) reports on the country’s economic indicators was hanging the fate of international gold prices in abeyance.



The exporters say that from Thursday to Friday evening the gold prices eased down to $ 1,365 (per ounce) in the international market. The decrease was because of the FRC meeting wherein the body expressed satisfaction over favorable numbers on the unemployment rate in America.



“This positive brought down gold prices on the local market by around Rs550 per tola,” said an exporter. On Friday, per tola gold in the local market closed at Rs54,600.



However, fear for a possible US attack on Syria kept the market sentiments volatile that pushed the gold prices up on Saturday. “On Saturday, the international gold prices again moved upward and stood at $ 1,390,” the exporter added.



This increase, he said, reflected on local prices that swelled to Rs54,950, registering a rise of Rs350.



Haroon Chand, president All-Sindh Sarafa Association, said the market was not so significantly changing and the current price-hike of a few hundreds was not so noteworthy.



“We call it significant when a major change, like ranging from Rs2,000 to 3,000 (per tola), takes place,” the jeweler told Pakistan Today.



However, an exporter, who also trades the precious metal locally in main Sadar market, said gold prices in the country were bound to skyrocket if the US attacked Syria.



“Presently, the market is quite uncertain as you never know what unfolds in the next few days,” he said. The exporter said if Syria was attacked the gold in international market would peak by $100 to $150 to stand at $ 1,450.



“This would lead to an increase of at least Rs5,000 in per tola gold prices in Pakistan. The price would then be around Rs60,000. It may go even beyond,” he speculated.— Agencies