On Wednesday, domestic gold rates in Pakistan continued their upward trajectory, with 24-karat gold reaching an all-time high of Rs. 222,700 per tola, marking a significant surge of Rs. 1,700 per tola. Both domestic gold and silver rates in Pakistan are currently at their highest levels ever.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold rose by Rs. 1,457 to settle at Rs. 190,929 per tola, while the price of 10-gram 22-karat gold settled at Rs. 175,019 per tola. In the domestic market, the price of 24-karat silver also slightly increased by Rs. 20 to close at Rs. 2,750 per tola, and 10-gram 24-karat silver gained Rs. 17.15 to close at Rs. 2,357.68 per tola.

Meanwhile, international spot gold prices briefly broke the all-time high set in 2020, reaching a daily high of $2,081.82, before falling heavily by 2.13% to trade at $2,037.29, a change of -0.26% on the day. U.S. gold futures are currently trading at $2,048. This drop occurred after the Fed raised interest rates by 25 bps on Tuesday and signaled a potential rate pause.

Fed Chairman Jerome Powell noted that it is a meaningful change to no longer anticipate more firming of policy, indicating a possible rate-hike pause. Powell also mentioned during the press conference that the Fed feels like it’s close, or maybe even there, in terms of reaching a sufficiently restrictive level. The decline in the U.S. dollar index (DXY) and US benchmark treasury yields also contributed to the drop, with DXY falling 0.7% after the Fed meeting and US10Y and US02Y falling 2.59% and 3.98%, respectively.

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