Gold nears Rs400,000 per tola

Gold prices continued their upward march on Tuesday, hitting a new all-time high in tandem with a global rally driven by safe-haven demand and expectations of further US Federal Reserve rate cuts.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola surged by Rs5,100 to reach Rs398,800, while the rate for 10 grams climbed Rs4,372 to settle at Rs341,906. This follows Monday's sharp rise of Rs3,400 per tola, which pushed domestic prices to Rs393,700.

Internationally, gold also set fresh records, rising by $51 to $3,770 per ounce (with a $20 premium). Investors sought safety amid persistent geopolitical uncertainty and awaited Federal Reserve Chair Jerome Powell's speech later in the day for clues on the US monetary outlook.

Silver prices in the local market also edged higher, gaining Rs42 per tola to Rs4,637.

Spot gold in the global market rose 0.7% to $3,771.94 per ounce as of 10:18 am ET (1011 GMT), after hitting a fresh record high of $3,790.82 earlier in the session, according to Reuters. US gold futures for December delivery rose 0.8% to $3,804.30.

Interactive Commodities Director Adnan Agar said the market remained firmly bullish. "Gold set another new record high. It reached $3,790 and was later at $3,775. On the lower side, it hit $3,768," he said.

"The market is still on the upside and no one can predict the top right now," Agar emphasised. "There is talk of $3,900 or even $4,000 – it's almost touching $3,800. So, let's see what happens in the coming days."

Meanwhile, the Pakistani rupee continued its modest upward momentum against the US dollar, closing at 281.42 in the inter-bank market, a slight gain of three paisa, or 0.01%, from the previous day's close at 281.45. This marked the local currency's 33rd consecutive session of appreciation.

Currency dealers said the rupee's steady recovery had been underpinned by improved market sentiment following recent positive developments with Saudi Arabia.

While earlier concerns lingered owing to pressure from rising non-oil imports and stagnant inflows, treasury officials noted that optimism has begun to outweigh those risks, with expectations that the gradual appreciation trend could continue in the near term.

Analysts, however, cautioned that underlying fundamentals remained largely unchanged. They stressed that sentiment-driven rallies could ease market pressure in the short run, but sustainable stability would ultimately depend on stronger inflows and effective management of import demand.