ISLAMABAD (Commodity Online): Pakistan is witnessing a surge in hedging of gold.

Dealers told newspapers that the domestic gold prices are rising in line with the trend of global gold markets. But, the increase is usually not as much as internationally because people stop buying the metal when prices are too high.

Yellow metal has gained as much as 30 per cent in 2009 as compared to same period in last year in Pakistan.

The international investors put money into gold on poor returns on investments and international economic recession.

Gold was within sight of the next target of $1,000 an ounce on back of greater demand in next coming months.

The yellow metal rose 21 per cent in China and 20 per cent in India.

The gold future contracts volumes at National Commodity Exchange Limited (NCEL) witnessed around 350 per cent increase this year 2009.

The mini gold future contract project was launched in second week of September 2008 in collaboration with a gold bar sector of a refinery in Switzerland.

The exchange has extended trading time to 21 hours a day, which has resulted around 2.8 tonne gold contracts in August 2009.