Gold prices in Pakistan surged to yet another record on Wednesday, mirroring the yellow metal's rally in the international market, where softer US jobs data bolstered expectations of a Federal Reserve interest rate cut later this month.
Heightened global uncertainties also kept safe-haven demand strong, further fueling the uptrend. According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola rose Rs6,000 to settle at a historic high of Rs376,700. Meanwhile, the price of 10 grams climbed Rs5,144 to Rs322,959, also an all-time high.
A day earlier, domestic gold prices had remained stable, with the per-tola rate unchanged at Rs370,700.
On the global front, gold extended its record-breaking rally as investors bet on a potential rate cut by the US Fed amid soft employment data, while persistent geopolitical and economic risks sustained demand for the precious metal.
Interactive Commodities Director Adnan Agar noted that while gold continued to gain momentum, its rally appeared "very overextended." He highlighted that gold touched the high of $3,567 and was trading around $3,564, after hitting the low of $3,526.
"There are chances that it will make a correction after going near $3,580 or $3,600, and then it may fall back into the $3,460-3,500 range," he said. "The upcoming US data, including key releases on Thursday and Friday, will be critical for determining the next direction for gold." Market analysts believe that while the long-term outlook remains bullish due to global macroeconomic headwinds and investor flight to safety, short-term corrections cannot be ruled out, particularly if the upcoming US data springs a surprise and tempers rate cut expectations.
Spot gold was up 0.9% to $3,562.80 per ounce by 10:46 am EDT (1446 GMT), after hitting a record high of $3,565.57. The World Gold Council, in collaboration with law firm Linklaters and consultancy firm Hilltop Walk Consulting, has announced a new framework to modernise the global gold market, according to Reuters.
The proposal introduces a new structure called Pooled Gold Interests, which allows investors to own a share of physical gold stored in vaults, including in small, fractional amounts. The system is designed to make gold easier to trade and use, including as collateral in financial markets, and allow easy and secure transfer of gold interests between parties.
Meanwhile, the Pakistani rupee extended its upward trend against the US dollar, inching up 0.01% in the inter-bank market. By the day's close, the currency stood at 281.71 per dollar, marking an improvement of one paisa. This also reflected the rupee's 19th straight session of gains.
Since August 6, 2025, the local currency has appreciated a cumulative 96 paisa against the greenback. A day earlier, it had closed at 281.72.
Furthermore, the State Bank of Pakistan (SBP) raised Rs551.97 billion on Wednesday through auctions of government securities, including Rs36.74 billion via Pakistan Investment Bonds – Floating Rate (10-year) and Rs515.23 billion through Market Treasury Bills (three, six, and 12 months).
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