KARACHI: Gold prices in Pakistan soared to another all-time high on Wednesday, tracking gains in the international market as investors rushed to the safe-haven asset on renewed US-China trade tensions and growing expectations of US Federal Reserve rate cuts.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold surged by Rs5,800 to reach Rs440,900 per tola. The 10-gramme rate also climbed by Rs4,972 to settle at Rs378,000.

The fresh increase comes just a day after gold had already hit a record Rs435,100 per tola, rising by Rs6,900 on Tuesday.

Internationally, gold touched a historic peak of $4,186.68 per ounce before settling at $4,173.56, up 0.8 percent in early trade. US gold futures for December delivery also gained 0.7 percent to $4,192.90.

In line with the global trend, silver prices in Pakistan rose by Rs90 per tola, reaching Rs5,337.

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Analysts say the rally is being driven by mounting expectations of US interest rate cuts later this year, which boost demand for non-yielding assets like gold. Federal Reserve Chair Jerome Powell recently signaled caution in monetary policy, noting the US economy’s firmer trajectory despite a weak labour market.

Markets are now pricing in a 25-basis-point cut in both October and December. Meanwhile, geopolitical uncertainty, especially intensifying US-China trade tensions, has further lifted gold’s safe-haven appeal.

In Pakistan, gold has been on a steady upward trend throughout October, starting the month at Rs410,278 per tola and repeatedly breaking records to touch Rs440,900 by mid-month.