The per tola gold sold at Rs275,500 on Wednesday compared to its sale at Rs273,000 on last trading day, the All Sindh Sarafa Jewellers Association reported.

The price of 10-gram of 24 karat gold also increased by Rs2,144 to Rs236,197 from Rs234,053, the association said, and added that the price of 10-gram 22 karat gold went up to Rs216,514 from Rs214,550.

The price of per tola silver increased by Rs100 and was traded at Rs3,050 whereas that of ten gram silver went up by Rs.85.74 to Rs2,614.88.

According to FX Street, gold rallied to another record high of $2.670 per troy ounce on Wednesday after an unexpected drop in US Consumer Confidence data on Tuesday increased bets of more aggressive easing and deeper interest rate cuts from the Federal Reserve (Fed).

Lower interest rates are positive for Gold, as they reduce the opportunity cost of holding the non-interest-paying asset, making it more attractive to investors, it added.

The report maintained that the biggest stimulus push since the Covid pandemic from the People’s Bank of China (PBoC) announced on Tuesday, including aggressive cuts to borrowing costs amongst a package of measures to inflate the flagging economy, also supported Gold’s rise.

The escalation of tensions in the Middle East after more bombing by Israel of Hezbollah targets in Lebanon is further pushing safe-haven flows into the yellow metal.