Gold prices in Pakistan continued their upward trend on Wednesday, reaching a new record high, driven by a rise in international rates. The price of gold per tola in the local market increased by Rs300, bringing it to Rs261,000. Meanwhile, the price for 10 grammes of gold rose by Rs257, reaching Rs223,765.
On the previous day, the price of gold had settled at Rs260,700, marking a Rs700 increase, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
While the international gold rate remained steady on Wednesday, the APGJSA noted that the price was $2,512 per ounce, which included a premium of $20.
In contrast, silver prices in the local market remained unchanged at Rs2,950 per tola.
Globally, gold prices continue to be buoyed by expectations of an imminent rate cut by the US Federal Reserve and ongoing geopolitical uncertainties.
The anticipation of the Fed beginning a rate-cutting cycle as early as September has put downward pressure on US Treasury bond yields and the US Dollar, contributing to the surge in gold prices, which hit a new record on Tuesday.
According to the CME Group’s FedWatch Tool, there is now over a 70 per cent probability that the US central bank will reduce borrowing costs by 25 basis points at the September FOMC meeting.
Additionally, a recent Reuters poll suggests that a slight majority of economists expect the Fed to implement a 25 basis point cut at each of the three remaining meetings in 2024, one more reduction than was anticipated last month.
