Gold spikes to new record at Rs283,400

KARACHI:

Taking cue from the fast rising global market, gold spiked Rs1,100 to a new record high of Rs283,400 per tola (11.66 grams), maintaining its record-breaking streak for the sixth consecutive working day on Tuesday.
Meanwhile, Pakistani rupee ticked down Rs0.05 to Rs277.74 against the US dollar in the inter-bank market. The currency lost some ground for the second straight day.
All Pakistan Saraf Gems and Jewellers Association reported that the precious metal had surged a cumulative Rs8,400, or 3%, in the past six working days.
In the international market, bullion rose $11 to $2,737 per ounce (31.10 grams), reflecting a total increase of $84 over six days. Market talk suggests that escalation in geopolitical tensions in the Middle East and the upcoming presidential election in the US have continued to spark extensive buying of the safe-haven asset in global and local markets.
Gold has attracted increased investor interest in the wake of speculation that the US central bank is considering making a second straight cut in key interest rate in the coming weeks. Repeated reductions in interest rate by the European Central Bank also bolstered demand for bullion in the international market. According to market players, Pakistan is also witnessing a higher demand for pure gold bars. However, the business of gold ornaments has ground to a halt owing to a sharp spike in bullion prices, which have gone beyond the purchasing power of common man.
In the open market, the local currency improved Rs0.03 on a day-on-day basis, closing at Rs278.72/$, according to the Exchange Companies Association of Pakistan (ECAP).