Gold prices reached a historic peak, driven by factors including a weakening United States dollar and the anticipated decision by the Federal Reserve to implement an interest-rate reduction.
The surge in gold’s value was further accentuated by ongoing geopolitical conflicts, especially within the Middle East, which elevated the demand for assets considered to be safe havens.
As a result, spot gold surged by 1.7%, reaching a record high of $2,498.72 per ounce and briefly exceeding $2,500.99. Similarly, U.S. gold futures experienced a significant increase, with prices surging by 1.8% to $2,537.80 per ounce. During this period, gold witnessed a notable gain of 2.8% in value.
Parallel to the global trend, gold prices exhibited a similar upward trajectory in Pakistan. By August 17, 2024, the rate for 24k gold had climbed to Rs 258,650 per tola and Rs 221,755 per 10 grams.
The Karachi Sarafa Bazar Association noted similar price increases in 22k gold, with rates reaching Rs 237,087 per tola and Rs 203,274 per 10 grams.
The ascent in gold prices on the international stage was attributed to a decrease of 0.4% in the dollar index, making gold an increasingly appealing investment for international purchasers.
Tai Wong, an independent metals trader, observed that the value of gold surpassed $2,500 over the course of the preceding two weeks, marking the focus now shifting to the Jackson Hole Symposium. This event is anticipated to feature a discussion on potential interest-rate reductions by Federal Reserve Chair Jerome Powell.
