KARACHI: Gold prices continued spiraling upward on Thursday owing to a surge in prices of the precious metal in the international market, reported ARY News.
Per tota (11.66grams) price of gold reached Rs82,250 after an increase of Rs2,150, whereas 10 grams of gold surged by Rs1,844 to Rs70,516.
Gold prices rose to a one-week high in global market, extending gains from the previous session after U.S. Federal Reserve Chairman Jerome Powell’s dovish remarks bolstered expectations of an interest rate cut this month.
Spot gold rose 0.1% to $1,419.64 per ounce at 1148 GMT, after earlier hitting its highest since July 3 at $1,426. The metal gained 1.5% in the previous session.
U.S. gold futures jumped 0.6% to $1,421.60 an ounce.
“Powell’s testimony last night is giving gold a significant lift, with the market taking an indication that there is going to be a rate cut of 25 basis points coming soon,” said Ross Norman, chief executive at bullion dealer Sharps Pixley.
In his testimony to Congress, Powell pointed to broad global weakness clouding the U.S. economic outlook amid uncertainty on the fallout from the Trump administration’s trade conflict with China and other nations.
Echoing the dovish sentiment, the minutes from Fed’s June policy meeting showed many policymakers thought more stimulus would be needed soon, reinforcing the case for a U.S. interest rate cut in July.
