Sri Lanka, June 16 -- The gold prices climbed sharply yesterday, with the local bullion dealers reporting a steep increase in the sovereign prices after the international gold rates rose above US $ 4,300 an ounce, amid the heightened investor demand for safe-haven assets.

The price of a 22-carat gold sovereign in Colombo's Sea Street market rose to Rs.360,600, while a 24-carat sovereign increased to Rs.392,000, from Rs.386,000 recorded on Saturday.

The traders said the local prices increased by around Rs.6,000 within hours, as the international gold rates surged and continued to influence the domestic market valuations.

The rally comes as the investors increasingly turn to gold as a hedge against geopolitical uncertainty, inflation co...