Gold prices powered higher this week, firmly crossing the psychological $4,600-per-ounce threshold as a weakening US dollar and aggressive central bank buying catalyzed a fresh wave of momentum across global bullion markets.
Spot gold climbed past $4,625 an ounce, building on a powerful multi-month recovery. Market analysts point to a confluence of monetary and geopolitical factors fuelling the surge.
Recent steps by the US Treasury to expand long-term debt buyback programs have softened greenback valuations, triggering a broad debasement trade that routinely benefits non-yielding hard assets.
At the same time, persistent supply concerns and geopolitical flashpoints in the Middle East have kept a thick risk premium locked into commodities. Institutional investors and global monetary authorities continue to lean heavily on bullion as a reliable hedge against inflation and systemic volatility.
Persistent structural accumulation by central banks across emerging and developed markets has provided a formidable price floor, preventing sharp downward corrections.
In Pakistan, local bullion rates scaled new heights, with 24-karat gold jumping to Rs477,136 per tola following the global upward trajectory. Local traders note that domestic demand remains resilient despite record-high prices as savers seek refuge from currency fluctuations.
While short-term technical indicators suggest gold is approaching near-term overbought territory, major institutional forecasters remain cautiously optimistic heading into the final quarter of the year.
Traders are keeping a close watch on upcoming inflation prints and Federal Reserve policy hints, which are expected to dictate whether bullion can challenge its historic.
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