960414

gold rates may rise

on lower rupee value

KARACHI: Gold rates in Pakistan may rise gradually because of fears of a further depreciation of the rupee before the announcement of the budget for fiscal 1996/97 (July/June) in June, dealers said on Sunday.

"Gold rates will certainly rise if the rupee is depreciated by the State (central) Bank of Pakistan," dealer Sajid Siddiqi said after the central bank adjusted the rupee lower, pushing up the gold price up in the domestic markets.

The bank depreciated the rupee to 34.6600/34.8333 to the dollar on Sunday from 34.5800/34.7529 fixed on April 3.

Gold closed at 4,783 rupees ($137.67) per 10 grams on Sunday from 4,774 on Saturday, Siddiqi said.

"The gold rate rose because of the fall in the rupee's value," he said.

The rate rose gradually to 4,778 rupees in the trading week that closed on Thursday from 4,766 on April 2. The bullion market was closed on April 4 due to a strike in Karachi.-Reuter