Gold at all-time high of Rs285,400 per tola amid global safe-haven demand

KARACHI: Local gold surged by Rs2,000 per tola to an all-time high of Rs285,400 on Wednesday, tracking global safe-haven demand as weak stocks, the Middle East conflict, and US election nerves sent risk-averse investors on a bullion buying spree.

According to data provided by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the rate of 10-gram gold rose by Rs1,714 to Rs244,684.

This was the seventh consecutive increase in the price of gold in the local market, each time setting a new record.

In the global market, gold prices hit record highs as its price per ounce rose by $20, reaching $2,757 on investors' reluctance to place major bets ahead of the US election in two weeks.

Investors are also rethinking how much the Federal Reserve might need to cut interest rates after the most recent US economic data has pointed to an economy that continues to expand and create jobs.

World stocks, meanwhile, are turning lower, but still near record highs, suggesting that equity investors are focusing more on the positives around the economy and earnings - for now, at least.

Conflict in the Middle East has also given risk-averse investors an excuse to buy gold, analysts said.

Meanwhile, the price of silver also witnessed an upward trend, increasing by Rs200 to Rs3,350 per tola in the local market.

A day earlier, the price of yellow metal rose by Rs1,100 pushing the price per tola to a then-record Rs283,400.