Gold price in Pakistan surges to record high

April 04, 2024 (MLN): Gold price in Pakistan has surged to a new peak as the key benchmark 24-karat gold spiked to Rs241,100 per tola in today's session, reflecting a gain of Rs2,200 per tola compared to the previous session's closing.

It is crucial to note that the previous highest price for 24-K gold was Rs240,000, observed on May 10, 2023.

However, gold has not yet reached its all-time intraday high, as per the Karachi Sarafa Association, the highest intraday price recorded is Rs242,700.

The rally currently being witnessed in the domestic bullion extends from March in which the yellow metal gained a substantial Rs19,100 in line with the surge in international gold prices.

The association further reported that the price of 24-karat gold reached Rs206,704 per 10-gram, up Rs1,886 compared to the last session.

Similarly, the price of 22-karat gold was quoted higher at Rs189,480 per 10-gram.

The safe haven asset closed yesterday's session marking its seventh consecutive victory on strengthened hopes for a rate cut soon by the U.S. Fed, coupled with increased appeal due to rising Middle East tensions.

At the time of writing, spot gold is traded at $2,293.55, down by 0.28% or $6.5 on the day.

Fed officials including U.S. central bank chief Jerome Powell on Wednesday continued focusing on the need for more debate and data before interest rates are cut, a move financial markets expect to occur in June, as Reuters reported.

The U.S. jobs report for March is due to be released on Friday, with new inflation data coming next week.

"If non-farm payrolls meet expectations or is worse than expectations in terms of the job market being weaker, then this would be positive for the potential for an interest rate cut which would then be positive for gold," Langford added.

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