KARACHI (Duny News) – Gold recorded a significant increase in its prices on Tuesday in line with upward trend in global market.
The price of per tola gold surged by Rs7,700 to reach Rs436,562 while the rate of 10-gram moved up by Rs6,601, taking new price to Rs374,281.
A day earlier, gold prices remained unchanged in Pakistan.
Meanwhile, gold extended gains in international market to hit its highest in more than a week, brushing off a firm dollar, after dovish comments from Federal Reserve policymakers revived prospects of a US rate cut in December.
Spot gold rose 0.1% to $4,141.49 per ounce by 0631 GMT, the highest since November 14, building on a 1.8% advance on Monday.
US gold futures for December delivery were 1.1% higher at $4,139.10 per ounce.
"(Gold is primarily being) driven by expectations of a rate cut ... in the last two weeks and since expectations shot up (rapidly), it caused gold prices to recover in the short term," OANDA senior market analyst Kelvin Wong said.
"Market participants will be viewing any demand-related U.S. economic data, with much more interest right now to see whether the Fed's concerns regarding a softer demand situation, could be labor market, retail sales, or consumer confidence, outweigh the so-called sticky inflation situation."