Driven by the rapidly increasing global demand, gold surged by Rs1,100, reaching a new all-time high of Rs283,400 per tola (11.66 grams) on Tuesday, marking its sixth consecutive day of record-setting prices.
Simultaneously, the Pakistani rupee depreciated by Rs0.05, settling at Rs277.74 against the US dollar in the inter-bank market, marking its second day of decline.
The All Pakistan Saraf Gems and Jewellers Association indicated that the price of gold had cumulatively increased by Rs8,400, or 3%, over the past six working days. Internationally, the price of bullion climbed by $11, reaching $2,737 per ounce (31.10 grams), reflecting a total rise of $84 during the same period.
The global surge in gold prices is attributed to escalating geopolitical tensions in the Middle East and the approaching US presidential election, which have fueled a wave of safe-haven buying in both international and local markets.
Investor interest in gold has also been bolstered by speculation that the US Federal Reserve may soon implement a second consecutive interest rate cut.
Additionally, the European Central Bank’s ongoing rate reductions have further supported demand for gold on the global market.
In Pakistan, there has been a noticeable increase in demand for pure gold bars. However, the market for gold jewelry has nearly come to a standstill, as the sharp rise in bullion prices has made it unaffordable for many consumers.
In the open market, the local currency slightly improved by Rs0.03 on a daily basis, closing at Rs278.72/$, according to data from the Exchange Companies Association of Pakistan (ECAP).
