Gold surges to $3,818/oz to record high
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In Pakistan 24 karat gold touch Rs 403600 a Tola after increase Rs 5900 in a day. 10 grams 24 karat gold touched 346021 after a gain of Rs 5058 in a day
KARACHI: Gold prices hit all-time high in local and international markets. In the international markets, the Gold touched $3,818 an ounce for the first time on Monday to hit a record high, as expectations of a US rate cut and concerns about a potential government shutdown fueled safe-haven demand amid heightened geopolitical uncertainty.
Spot gold jumped 1.5% to $3,818 per ounce, after hitting $3,819.59 earlier in the session.
In the local markets, the 24 karat gold touch Rs 403600 a Tola after increase Rs 5900 in a day. 10 grams 24 karat gold touched 346021 after a gain of Rs 5058 in a day. US gold futures for December delivery rose 1% to $3,845.70.
The U.S. dollar index opens new tab fell 0.2%, making greenback-priced bullion less expensive for overseas buyers.
“Some people describe gold as the sum of all fears, whether they’re economic or political and it’s quite clear that at the moment we’ve got issues on both sides,” said independent analyst Ross Norman.
US President Donald Trump will meet with the top Democratic and Republican leaders in Congress later on Monday to discuss extending government funding. Without a deal, a shutdown would begin from Wednesday.
The U.S. Personal Consumption Expenditures Price Index on Friday matched expectations, reinforcing bets on further Federal Reserve rate cuts, in October and December meetings. “With the Fed set to cut further rates over the next six months, I think there should be more upside for the yellow metal, targeting a level of $3,900/oz,” said UBS analyst Giovanni Staunovo.
Gold, a safe-haven asset that tends to perform well in low-interest-rate environments, has climbed 45% this year, supported by strong central bank buying, the rise of gold ETFs, a weak dollar, and retail investor demand.
Many brokerages have turned bullish on the rally in gold prices.
Elsewhere, spot silver rose 2% to $46.90 per ounce, hitting a more than 14-year high, while platinum gained 0.9% to $1,583, a 12-year high, and palladium steadied at $1,269.
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