Gold prices in Pakistan jumped by Rs4,200 per tola on Wednesday, pushing the price of 24-karat gold to Rs463,936, according to the All Pakistan Sarafa Gems and Jewellers Association.
The price of 10 grams of gold also increased by Rs3,601 to Rs397,750.
The rise came as international gold prices strengthened amid easing expectations of a US Federal Reserve rate hike. Spot gold climbed as much as 0.9% to around $4,406.64 per ounce, reaching a more than two-month high after US inflation data came in line with expectations.
Investors are now betting that the Federal Reserve may hold off on raising interest rates at its September meeting. Lower rate-hike expectations generally support gold by reducing the opportunity cost of holding the non-yielding asset.
Analysts said the prospect of less aggressive Fed policy, along with a weaker dollar and continued geopolitical uncertainty, has provided fresh support to bullion prices.
The latest international rally could continue to influence Pakistan’s domestic gold market, where prices are also affected by movements in the rupee-dollar exchange rate.