US Debt Buyback Sends Global Gold Prices Soaring Near $4,500

Global gold prices surged on Wednesday evening, nearing the $4,500 per ounce threshold after a massive jump of over 3.5% in late trading.

The sudden increase was triggered by the US Department of the Treasury's announcement to expand its long-term debt buyback program from $2 billion to at least $4 billion, driving down bond yields and weakening the US dollar.

As a result, spot gold prices skyrocketed by over $154 per ounce within a 4-hour window, with silver also rallying over 3.7% to cross $65.70 per ounce.

In Pakistan, the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) had earlier posted a rate drop of Rs 3,700 per tola based on afternoon international quotes, but due to the massive evening jump in global spot rates, local markets will absorb this increase when opening on Thursday morning.

If global spot rates sustain near $4,480, $4,500 levels till morning, 24K gold per tola rates in Pakistan could potentially rise by Rs 4,000 to Rs 7,000 per tola when fresh official rates are announced.