A hawkish US Federal Reserve and the rupee's plunge to a record low both encouraged investors to turn to gold as their options for savings remained restricted as the gold price in Pakistan maintained its spectacular run Thursday.

All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) data revealed that the price of gold (24 carats) climbed by Rs 2,200 per tola and Rs 1,887 per 10 kilos to settle at Rs 207,200 and Rs 177,641, respectively.

With the International Monetary Fund (IMF) in a standstill, forex reserves declining, and the currency weakening, which will increase the price of importing gold, the precious metal has been rising for two straight sessions.

However, investors were only buying gold bars, not jewellery, which had lowered goldsmiths' profit margins and put the labour force at risk of losing jobs as jewellery manufacturers turned to other careers in the lack of work.

As investors remained onto the belief that the US Federal Reserve will soon cease its rate-hiking cycle after it announced an anticipated 25-basis-point hike, gold reached a nine-month high on the international market on a weak dollar.

Having earlier in the session reached its highest level since April 2022, spot gold was up $31 at $1,955 per ounce.

After a year of higher rate increases, the US central bank on Wednesday reduced the rate increase to a quarter percentage point. It claimed that the battle against high inflation had reached a turning point, but that "winning" would still necessitate raising rates further and keeping them there at least through 2023.

In other remarks, he (Fed Chair Powell) attempted to control market expectations. But there was enough dovishness to keep driving gold higher, according to Craig Erlam, a senior market analyst at OANDA.

In the meantime, local silver prices rose by Rs50 per tola and Rs42.88 per 10 grammes, respectively, to settle at Rs2,300 and Rs1,971.88.