Pakistan Gold Prices Surge Amid Flat Global Market
Gold prices in Pakistan surged by Rs1,200 per tola on Monday, reaching Rs437,536, despite a relatively flat international market. The All-Pakistan Gems and Jewellers Sarafa Association reported this increase, which came after a Rs4,300 drop on Saturday. The local market's strength contrasted with the global scene, where gold prices remained steady amid pressure from a stronger US dollar and elevated Treasury yields.
Internationally, spot gold edged down 0.1% to $4,137.79 per ounce, while US gold futures for December delivery gained 0.1% to $4,166. The US dollar's strength made gold more expensive for buyers holding other currencies, while high bond yields limited its appeal. However, expectations of a Federal Reserve rate hike in October have weakened, with traders now seeing an 84% probability for a hike in December.
Forex.com market analyst Fawad Razaqzada suggested that gold could face a near-term decline before stronger buying returns, citing the rising dollar and bond yields. He noted that recent US economic data has fallen short of expectations, reducing bets on higher rates. Lower rates typically support gold by reducing the opportunity cost of holding the non-yielding asset.
Meanwhile, silver prices in Pakistan also rose, reaching a new all-time high of Rs6,588 per tola. The Pakistani rupee gained slightly, closing at 277.06 against the US dollar. Longer-term expectations for gold remain bullish, with Metals Focus predicting new all-time highs in 2027.