Gold prices in Pakistan surge nearly 5% in a week

March 06, 2024 (MLN): The domestic bullion market extended its upward trend for the sixth consecutive session, with 24-karat gold rising by Rs1,500 per tola to reach Rs225,400 on Wednesday.

In just the past six trading sessions, domestic investors have joyed a gain of 4.93% or 10,600 per tola amid the surge in international market.

The Karachi Sarafa Association further reported that the price of 10-gram 24-karat gold reached Rs193,244 per tola, reflecting a rise of Rs1,286.

The price of 10-gram 22-karat gold also saw an increase and was quoted at Rs177,140.

Meanwhile, silver prices remained unchanged today, with 24-karat silver being sold at Rs2,600 per tola and Rs2,229.08 per 10-gram.

International spot gold surged to an all-time high of $2,141.79 an ounce yesterday, likely buoyed by expectations for US rate cuts, coupled with geopolitical tensions.

The yellow metal has climbed about 4.6% over the last six sessions.

Gold’s ascent has taken some in the market by surprise, particularly since there hasn’t been any major change in expectations for when the Federal Reserve will lower borrowing costs, says Bloomberg.

Swaps markets show a 62% chance of a cut in June, compared with 58% at the end of February.

Lower rates are typically positive for bullion, which doesn’t offer any interest.

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