noworldsystem.com

The dollar sank to a new low against the euro on Tuesday, as markets worried about the ongoing U.S. lending crisis and the state of the country’s economy.

The 15-nation currency rose to an all-time high of $1.6038 in European trading, surpassing its previous record of $1.6018 set on April 22.

After reaching the record, the euro fell back to $1.5983 — still above the $1.5916 it bought in late New York trading Monday.

Gold once again broke all barriers on Tuesday and created a record high of Rs22,071 per 10 grams and yet remained under-cost compared to international markets leading to a cold local market and high selling in the UAE.

President All-Pakistan Supreme Council of Jewelers Association, Alhaj Haroon Rashid Chand said that the yellow metal had reached Rs25,750 per tola, which is a new record in Pakistan.

Chand recalled that gold had reached its highest of Rs20,657 per 10 grams and Rs24,100 per tola on March 17 in Pakistan when international yellow metal prices were US$1,032 an ounce four months earlier before creating new records over the past week.

He explained that the upward trend had resumed for the yellow metal following rupees further depreciating against US dollars and crude oil reaching fresh records per barrel.

He also informed that gold was being sold across the sea to Dubai markets in great amounts as the precious yellow metal was under cost in the local market by Rs580 compared to the Dubai bullion market.

Chand said that the trend of selling gold in UAE markets through smuggling or other illegal means, was adversely affecting Pakistan as the same gold was melted and then was reverted back to Pakistan at higher prices through the green channel. This, he added, led to a great imbalance in the country’s Balance of Trade.

He said that despite several appeals to the government to take note of the matter, it continued to remain ignored, while gold traders had also ceased to trust the Karachi Chamber of Commerce and Industry (KCCI) as the official representative body, for it had also disappointed them.

The jewelers association’s president said that KCCI was now dominated by industrialists who looked after their own benefits and raised personal points in front of the government rather than equally representing the small traders, leading to disharmony amongst businessmen and traders and moreover, heavy losses to the gold traders.

Dealers at the Kharadar Sarafah bazaar informed that there was absolutely no purchasing in the markets across Pakistan and small traders feared the continuity of their businesses.

They explained that both investors and customers were opting for alternative solutions rather than buying gold. While investors had slowly ventured into other commodities and investments, gold markets remained deserted as customers looked the other way towards artificial jewelry.

Many jewelry traders said that they had been compelled to reduce their profit margins to keep gold jewelry within affordable rates, but now could not further reduce their ‘making charges’ as that would mean higher losses for them.

The price of oil recorded its biggest weekly drop ever, and a gallon of gas finally pulled back from its record high. So is it time to declare the energy bubble popped? Experts won’t go that far just yet.

‘‘It’s too early to say we’ve seen the worst of it,’’ said Tom Kloza, publisher and chief oil analyst of the Oil Price Information Service in Wall, N.J.

Light, sweet crude for August delivery fell 41 cents Friday to settle at $128.88 on the New York Mercantile Exchange – well below its trading record of more than $147 a week earlier.