Gold prices in Pakistani markets surged to an all-time high in the last 24 hours after international rates somewhat regained last week’s bullish momentum when the US Dollar dropped in global markets.
On Tuesday, gold prices in the domestic market rose by roughly Rs. 1,150 per tola, with average rates in the local market going up to Rs. 189,300 per tola.
The 10-gram gold price also jumped by Rs. 986 to Rs. 162,294.
Despite the price surge in local markets, gold still managed to fall from a 9-month high on Tuesday, globally, due to a slight drop in US bond yields, but the market was still buoyed by expectations of slower interest rate hikes.
Spot gold was up 0.2 percent to $1,934.82 per ounce at 21:40 PM, having reached a high of $1,934.82 earlier yesterday. Gold futures in the United States finished 0.4 percent higher at $1,935.4.
Understandably, the dollar index fell 0.2 percent against its peers, making greenback-priced bullion more affordable for many buyers, while talks of another hike in the US Federal Reserve interest rate put some extra weight behind the commodity.
Although gold is regarded as a hedge against economic metrics such as currency and inflation, higher interest rates tend to dampen the appeal of zero-yielding bullion. In any case, the rare metal is still an investment worth having.