Gold hits record high on global trends

KARACHI:

Gold prices in Pakistan surged to an all-time high of Rs264,000 per tola (11.66 grams) on Wednesday, increasing by Rs2,300 in a single day. The rise followed global trends as investors took aggressive positions ahead of the release of the CPI inflation data.

In the international market, gold climbed $23 per ounce to $2,524, just shy of its recent record. Investors are expecting a deceleration in US inflation, coupled with rough unemployment and job creation figures for August, which could lead to a significant interest rate cut by the US Federal Reserve.

Meanwhile, the Pakistani rupee gained Rs0.08 in the inter-bank market, closing at Rs278.54 against the US dollar, extending its winning streak for the second consecutive day. In the open market, the rupee improved by Rs0.10, settling at Rs280.85 per dollar. Market speculation suggests that foreign investors have injected $27 million into Pakistan's government debt securities, helping to stabilise forex reserves and provided support for the rupee.