The price of gold in Pakistan on Wednesday reached a record high of Rs277,200 per tola, following an increase of Rs2,200 on the third trading day of the week.
The massive spike in the price of the yellow metal is attributed to the increase in the global bullion market, where gold price rose significantly by $22 to settle at $2675 per ounce.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) the price of 10 grams of gold rose by Rs1,886 to a record high of Rs237,654. On Tuesday, the price of gold fell by Rs700 to settle at Rs275,000 per tola.
Meanwhile, the price of silver remained stable at Rs3,500 per tola. It should be noted that Wednesday’s gold price surpassed last month’s peak when the gold price was recorded at Rs277,000 per tola.
Investors on Wednesday attributed the increase in the global bullion market to the US Treasury Department’s profits. Investors are also anticipating a further cut in interest rate by the US Federal Reserve by monitoring the latest stats on US retail sales, industrial production and weekly jobless claims.
Traders are pricing in a 97.2 per cent chance of a Fed rate cut of 25 basis points in November.