Gold rates up Rs4,100 per tola to all-time high

KARACHI: Gold prices surged by Rs4,100 per tola on Tuesday in the local market following an increase in the international market.

According to the All Pakistan Sarafa Gems and Jewellers Association, 24-karat gold rates reached an all-time high level of Rs388,100 per tola.Similarly, the price of 10-gram gold rose by Rs3,514 to Rs332,733.

In the international market too, gold reached another record on Tuesday, with its rally stoked by a surge in bets for a wave of Federal Reserve rate cuts this year, Bloomberg reported.Bullion gained as much as 0.6 per cent to a fresh all-time high of more than $3,659 an ounce, beating the previous peak on Monday. It climbed 2.5 per cent in the previous two sessions after unexpectedly weak US payrolls data on Friday prompted traders to price in at least two rate cuts this year, including a quarter-point cut at the Fed’s meeting next week. Gold tends to benefit from lower borrowing cost as it doesn’t pay interest, the Bloomberg report said.

Typically, gold prices in the local market are adjusted by a premium of $20 against rates in the international market.Silver rates increased by Rs20 to Rs4,358 per tola. Similarly, 10-gram silver rates also rose by Rs17 to Rs3,736.

With these increases, prices of gold and silver have reached an all-time high both in local and international markets. One jeweller said that the prices seem to increase in the coming days as well, as global geopolitical and economic uncertainties pushed investors towards gold buying.