Gold rally continues for seventh day, rupee stable

Gold hits record Rs285,400 per tola as global uncertainty drives surge; Pakistani rupee stable at Rs277.73 against USD

KARACHI:

Gold surged Rs2,000 to a new all-time high at Rs285,400 per tola (11.66 grams), in line with the global trend, maintaining its record-breaking streak for the seventh successive working day on Wednesday.

On the other hand, Pakistani currency remained stable at Rs277.73 against the US dollar in the inter-bank market for the second day in a row, which suggested that the gap between demand and supply of the greenback had narrowed to almost zero. All Pakistan Sarafa Gems and Jewellers Association reported that the precious metal increased $20 to a new record high at $2,757 per ounce (31.10 grams) in global markets.

Bullion has cumulatively surged 3.78%, or Rs10,400/tola, in the past seven days in local markets, while it gained a total of 3.92%, or $104/ounce, in the same period in international markets. Commentators said the safe-haven yellow metal has continued to invite demand from the global investor community as well as from local investors ahead of the expected second consecutive cut in interest rate by the US central bank soon and due to rising political uncertainty over the upcoming presidential election in the US in mid-November.

Besides, the increase in geopolitical tensions in the Middle East in the wake of Israeli aggression against Palestine, especially in Gaza, and the Russia-Ukraine conflict also drove the outstanding rally in gold. The commodity has soared by over $950/ounce since Israel imposed war on Palestine over a year ago in October 2023. Commentators did not rule out a massive correction in the commodity soon, while gold may continue to rise in the medium to long run. On the other hand, the local currency has continued to remain stable amid Finance Minister Muhammad Aurangzeb's approach to the IMF and the World Bank for climate funding in the range of $1-2 billion.