Gold sets new all-time high in Pakistan as global rates rise

Gold prices continued their uptrend in Pakistan on Monday, taking cue from the global market that went higher on expectations that the US Federal Reserve could cut interest rates in September.

In the local market, gold price per tola hit an all-time high of Rs370,700 after a gain of Rs3,300 during the day, according to the rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

Similarly, 10-gram gold was also sold at record high of Rs317,815 after it accumulated Rs2,829.

The international rate of gold increased to $3,480 per ounce (with a premium of $20) after a gain of $33, as per APGJSA.

On Saturday, gold price per tola had reached Rs367,400 after a gain of Rs3,600 during the day.

“Gold prices in Pakistan have increased to a fresh all-time high due to a significant rise in the international rate after it was reported that the United States central bank could cut the interest rates,” Abdullah Chand, a local gold dealer, said.

The US Federal Open Market Committee is scheduled for September 16-17 to decide about the monetary policy.

It may be noted that US President Trump Donald has repeatedly attacked the Fed’s chair, Jerome Powell, for not cutting the short-term interest rate and threatened to fire him. Trump is also attempting to fire Federal Reserve Governor Lisa Cook.

US consumer spending increased by the most in four months in July while services inflation picked up, but economists did not believe strong domestic demand would prevent the Federal Reserve from cutting interest rates in September against a backdrop of softening labour market conditions.

Meanwhile, a surge in silver demand has been seen in Pakistan, with the silver price per tola gaining Rs101 on Monday to reach Rs4,303.

“There is indeed a strong demand of silver across Pakistan. People are buying silver as they believe the rates may shoot up in the coming months,” Abdullah said. “Silver is available now in bar form in Pakistan.”

When asked whether the gold price per tola could reach Rs400,000 in Pakistan, he did not rule out the possibility, saying it could happen if the international market continues its upward trend.