Gold price surges to six-month high

KARACHI:

Gold price soared on Wednesday to a six-month high of Rs225,400 per tola (11.66 grams) as the precious metal took cue from the rising global market that touched an all-time high.

On the other hand, the Pakistani rupee maintained its downtick for the fourth consecutive working day and closed at Rs279.35 against the US dollar in the inter-bank market.

According to State Bank of Pakistan’s (SBP) data, the domestic currency ticked down Rs0.04 on a day-on-day basis.

All Pakistan Saraf Gems and Jewellers Association reported that bullion became costlier by Rs1,500 per tola, with a cumulative surge of 5%, or Rs10,600, in the past six successive working days.

Talking to The Express Tribune, Interactive Commodities Director Adnan Agar said gold hit a record high at $2,149 per ounce (31.10 grams) in the international market late evening (according to Pakistan time), following a quick surge of almost $100 in the past three days.

He said global investors were taking a bet in gold on speculation that the US central bank may reduce interest rate in the coming months. Gold hit the all-time high when the US Fed chairman began a two-day briefing in the Senate on interest rate outlook.

Immediately after hitting the record high, the precious metal shed almost $10 per ounce and saw a correction of $50-60 over the next one week.

Gold straightaway gained $170 to the record high compared to the price of $1,980 per ounce a couple of weeks ago, strongly suggesting a downturn in the global market in the short run.

Meanwhile, the rupee was showing signs of depreciation after gaining 10%, or Rs28, over five and a half months to stand at a more than four-month high of Rs279.11/$ last week. Earlier, it reached an all-time low of Rs307.10/$ in the first week of September 2023.

The downtick in the rupee supported the increase in prices of gold, which is an imported commodity.

According to the Exchange Companies Association of Pakistan (ECAP), the rupee regained Rs0.05 to Rs282 in the open market on Wednesday.

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