Gold prices continued their upward trend in both local and global markets, with the per tola rate in Pakistan climbing to Rs319,000 on Wednesday after a Rs1,650 increase.
Similarly, the price of 10-gram gold rose by Rs1,415, reaching Rs273,491, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Just a day earlier, gold had already hit a record high of Rs317,350 per tola after a Rs2,550 increase.
On the international front, gold prices surged as well, with APGJSA reporting a global rate of $3,038 per ounce (including a $20 premium), marking a $16 rise during the day.
The precious metal stayed above the crucial $3,000/oz level, remaining near its record high from the previous session.
Its demand remained strong due to rising geopolitical tensions in the Middle East and economic uncertainties.
Investors also closely watched the Federal Reserve’s decision later in the day, which could impact future market movements.
“The market conditions remain unchanged, with gold reaching a high of $3,045, once again matching its all-time peak,” said Adnan Agar, Director of Interactive Commodities.
Currently, gold is trading at $3,027, with a low of $3,022. He noted that the US monetary policy announcement scheduled for 11:00 PM Wednesday could lead to further price fluctuations, with the possibility of a slight correction before gold resumes its upward movement.
Agar pointed out that while interest rates are expected to stay unchanged, the Federal Open Market Committee (FOMC) chairman’s press conference will significantly determine the Federal Reserve’s stance on economic growth, inflation, and trade policies.
The market’s next move will depend on the insights shared during the conference.
Meanwhile, the Pakistani rupee gained slightly against the US dollar in the interbank market, appreciating by 0.02% on Wednesday.
The currency closed at 280.21, improving by six paisa from the previous day’s rate of 280.27.
Globally, the US dollar remained weak as investors awaited interest rate decisions from the Bank of Japan (BOJ) and the Federal Reserve.
Geopolitical tensions continued to escalate, with Israeli airstrikes on Gaza causing over 400 casualties.
At the same time, diplomatic efforts between US President Donald Trump and Russian President Vladimir Putin failed to achieve a ceasefire in Ukraine.
Additionally, the State Bank of Pakistan (SBP) raised Rs1.3 trillion through the auction of Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs).
The spread on 10-year PIBs rose by six basis points compared to the last auction, as reported by Optimus Capital Management. The current reference rate stands at 11.64%.