Gold posts highest single-day gain to zoom past Rs550,000 mark in Pakistan

• Ten grammes gold rises to Rs472,961.
• Silver rate increases by Rs271 per tola.
• International gold hits $5,300 per ounce.
  

Gold price in Pakistan soared to a record high on Wednesday, registering the highest single-day increase and breaching the Rs550,000 mark amid fresh highs in global markets.

According to market data, the price of gold rose by Rs21,100 to hit Rs551,662 per tola, the highest level ever recorded in the country’s history.

The price of 10 grammes of gold also rose sharply, gaining Rs19,080 to reach Rs472,961, according to local bullion market figures.

Silver prices mirrored the upward trend, increasing by Rs271 to stand at Rs11,911 per tola.

In the international market, gold prices rose above $5,300 per ounce for the first time as weakening confidence in the US dollar and concerns around the independence of the US Federal Reserve boosted demand for the safe-haven metal.

Spot gold jumped 1.7% to $5,275.68 an ounce after scaling a record $5,311.31. Prices gained more than 3% in the previous session.

US gold futures for February delivery jumped by 3.7% to $5,271.70 an ounce.

"(Gold's rise) is due to the very strong indirect correlation with the dollar and yesterday's price-rise in gold in the US session was due to Trump's remark to a casual question about the dollar ‍which implied that (there is) a broad-based consensus within the White House to have a weaker greenback going forward," said Kelvin Wong, a senior market analyst at OANDA.

The US dollar was grappling with a "crisis of confidence" as ⁠it struggled near four-year lows, exacerbating dollar selling, after President Donald Trump said the currency's ‍value is "great" when asked whether he thought it had declined too much.

Gold, ‌which does not yield interest, typically performs well when interest rates are low. The Fed is widely expected to hold rates steady at its January monetary policy meeting, currently under way.

The metal has gained more than 20% since the start of the year, building on last year's ⁠record gains. Analysts at ⁠Deutsche Bank say that gold could climb to $6,000 an ounce this year, citing persistent investment demand.

Retail demand in Shanghai and Hong Kong has also been brisk despite the record prices.

"On the jewellery side, I think the prices will soften demand, ‍but I think the high prices may, at the moment, be assisting a little bit of speculative investment from the retail side," Shah added.

Spot silver edged down 0.2% to $112.82 an ounce after hitting a record high of $117.69 on Monday. It has gained nearly 60% so far this ‍year.

Spot platinum was up 0.1% at $2,644.35 an ounce, having hit a record $2,918.80 on Monday, while palladium was also up 0.1% at $1,935.57.