Gold steadies at $3,654 amid US rate cut speculation

The record-breaking rally in bullion markets took a breather on Wednesday, with gold and silver prices holding steady at peak levels both internationally and in Pakistan.

In the international market, gold was unchanged at $3,654 per ounce after six days of consecutive gains. The pause reflects investor caution ahead of US inflation data expected later this week, which could shape the outlook for Federal Reserve interest rate decisions.

Domestically, gold prices remained unchanged at their highest-ever levels. The price of 24-karat gold stood at Rs388,100 per tola and Rs332,733 per 10 grams. Silver also showed no movement, trading at Rs4,358 per tola and Rs3,736 per 10 grams.

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This stability follows sharp upward movement earlier in the week. On Tuesday, gold jumped by Rs4,100 per tola, setting a new record high. A day earlier, on Monday, it had surged by Rs6,100 in one session to reach Rs384,000 per tola.

Market analysts say the global bullion rally has been supported by expectations of a September interest rate cut in the United States, which has put pressure on the dollar and Treasury yields. Investors tend to shift towards gold in such environments, given its traditional role as a safe haven.