Gold price hit an all-time high at Rs257,700 per tola (11.66 grams) in line with the global trend on Tuesday while the Pakistani rupee slightly weakened to Rs278.70 against the US dollar in the inter-bank market. According to the All Pakistan Sarafa Gems and Jewellers Association, bullion surged Rs1,200 per tola in a day, increasing by a total of Rs2,200 in the past five working days, with no change in three out of the five days.

Talking to The Express Tribune, a member of the gold pricing body, Abdullah Abdul Razzak, said the precious metal was on the rise owing to aggressive market talk that the US central bank would potentially make the first cut in interest rate next month (September). This, coupled with a prolonged Middle East political crisis, prompted global investors to continue to build positions in the precious metal.

The association reported that gold rose $19 to $2,458 per ounce (31.10 grams) in the international market.

Despite gold soaring to a historic high, the association said its price in the local market was still lower by Rs2,000 per tola when compared with the Dubai market.

Razzak revealed that demand for pure gold bars remained high as people were investing in the safe-haven asset to avoid the impact of likely devaluation of the rupee.

According to central bank data, the local currency depreciated Rs0.06 to Rs278.70 against the greenback, maintaining its downtrend over an uptick in demand for foreign currency ahead of public holiday to mark Pakistan’s Independence Day.

ECAP reported that the rupee remained stable at Rs280.40/$ in the open market for the seventh consecutive working day.