KARACHI: Gold surged by Rs2,000 on Wednesday, reaching a new all-time high of Rs285,400 per tola (11.66 grams). This marked the seventh consecutive day of record-breaking gains, driven by global market trends.
Meanwhile, the Pakistani rupee remained stable against the US dollar at Rs277.73 in the inter-bank market for the second day in a row. The stability suggests that the gap between the demand and supply of the dollar has significantly narrowed.
The All Pakistan Sarafa Gems and Jewellers Association reported that gold prices also rose internationally. The precious metal increased by $20 to a new high of $2,757 per ounce (31.10 grams).
In the past seven days, gold has surged by 3.78%, or Rs10,400 per tola, in local markets. In global markets, it has increased by 3.92%, or $104 per ounce, during the same period.
Analysts attribute this surge to rising demand for gold as a safe-haven asset. Investors are preparing for a potential second consecutive interest rate cut by the US central bank and political uncertainty ahead of the US presidential election in mid-November.
Additionally, geopolitical tensions in the Middle East, particularly the Israeli aggression against Palestine in Gaza, and the ongoing Russia-Ukraine conflict have fueled the rally in gold prices. Since the conflict began in October 2023, gold has soared by over $950 per ounce.
Commentators expect a potential correction in gold prices but believe the commodity may continue its upward trend in the medium to long term. The rupee’s stability is attributed to Finance Minister Muhammad Aurangzeb’s efforts to secure climate funding of $1-2 billion from the IMF and World Bank.
Follow us on Google News, Instagram, YouTube, Facebook,Whats App, and TikTok for latest updates