Gold price hits unbelievable peak in Pakistan as October begins

KARACHI: Gold’s unstoppable surge that defined September has now spilled into October, with the precious metal setting yet another record on the very first trading day of the new month.

On Wednesday, October 1, gold in the local market soared to an all-time high of Rs410,278 per tola, climbing by Rs3,500 in a single day, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The price of 10 grams also rose sharply, reaching Rs351,747 after an increase of Rs3,001.

This comes right after September closed on a record note, when gold had already touched Rs406,778 per tola. Tuesday itself had seen an impressive gain of Rs3,178. Now, with Wednesday’s fresh leap, October has kicked off with the metal scaling new heights.

Link to global trends

The surge in Pakistan mirrors what is happening globally. International gold prices also hit fresh records on Wednesday, fuelled by investors rushing towards safe-haven assets amid rising economic uncertainty.

Spot gold rose to $3,861.99 per ounce by early trade, after briefly touching an all-time high of $3,875.32. US gold futures for December delivery jumped to $3,901.40, gaining 0.7 percent. Later in the day, spot gold surged further to $3,891.96, while futures touched $3,918.60.

Market watchers pointed to two major reasons behind the surge: the official shutdown of the US government and growing expectations that the Federal Reserve may cut interest rates sooner than expected.

“The dollar is weakening on the back of expectations of an increasingly dovish Fed. This dynamic has accelerated after a failed attempt to pass a spending bill triggered a government shutdown,” said Ricardo Evangelista, a senior analyst at ActivTrades.

The shutdown, which left large parts of the US government closed, is expected to weigh heavily on economic output and could push thousands of federal workers out of jobs. The uncertainty surrounding the situation gave further momentum to gold buying.

Adding to the pressure on the dollar, the US currency index fell 0.2 percent against a basket of peers, making dollar-priced gold cheaper for buyers overseas.

Silver prices also climbed in the local market. The rate per tola increased by Rs50 to reach Rs4,826, extending the precious metals rally.

September’s rollercoaster ride

The October rally is a continuation of the momentum built last month. September proved to be a rollercoaster for gold in Pakistan, starting at Rs370,700 per tola and closing at Rs406,778.

Throughout the month, the precious metal saw sharp spikes, minor corrections, and steady climbs. The final week of September was particularly dramatic, with prices jumping from Rs395,800 on September 26 to Rs406,778 by September 30.

On September 1, gold stood at Rs370,700, already up by Rs3,300 from the previous day. Mid-month dips pulled the price briefly down to Rs384,000 on September 11.

By September 23, prices had leapt to Rs398,800 before correcting slightly.

Then, in the final stretch, momentum carried it to new historic highs, ending September with the strongest closing on record.

What it means for buyers and investors

For ordinary Pakistanis, the relentless surge has made gold jewellery increasingly expensive, dampening demand in local bazaars.

On the other hand, for investors, the metal remains a safe haven in uncertain times. With the global economy under pressure, the US in political deadlock, and central banks expected to turn towards easing, gold’s shine is unlikely to fade soon.

As October begins, all eyes are now on whether the rally will cool off or whether the precious metal is set to cross even more unbelievable milestones in the days ahead.

Web Desk