On August 16, 2024, gold prices reached an unprecedented peak, fueled by a weakening US dollar and growing speculation about a possible interest rate cut by the Federal Reserve. The surge in gold’s value was also driven by heightened geopolitical uncertainties, particularly in the Middle East, which intensified demand for safe-haven assets.
Spot gold prices climbed by 1.7% to $2,498.72 per ounce, briefly touching a high of $2,500.99. Meanwhile, U.S. gold futures saw a 1.8% increase, closing at $2,537.80. Over the week, gold prices surged by 2.8%.
In Pakistan, the rise in gold prices mirrored the global trend. On August 17, 2024, 24k gold was priced at Rs 258,650 per tola and Rs 221,755 per 10 grams. The Karachi Sarafa Bazar Association reported similar gains for 22k gold, which stood at Rs 237,087 per tola and Rs 203,274 per 10 grams.
The international market’s price surge was attributed to a 0.4% decline in the dollar index, enhancing gold’s appeal to global buyers. Independent metals trader Tai Wong noted that the spike past $2,500 followed two weeks of volatile trading, with market attention now shifting to the upcoming Jackson Hole symposium where Federal Reserve Chair Jerome Powell is expected to discuss potential rate adjustments.
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