Pakistan Gold Prices Surge as Global Market Gains Momentum

Gold prices in Pakistan climbed on Monday, driven by a rise in international markets. The price of one tola increased by Rs1,200 to Rs437,536, while 10-gram gold rose by Rs1,029 to Rs375,116, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This uptick follows a sharp decline on Saturday, when gold prices dropped Rs4,300 per tola.

The global gold market also saw gains, with prices increasing $12 to $4,150 per ounce. This rise came amid weaker-than-expected US job growth in September, which reduced expectations of an interest rate hike by the Federal Reserve in October. The probability of a rate hike this month now stands at just 18%, while the chance of a December increase remains higher at 81%, according to the CME FedWatch Tool.

Investors often turn to gold when interest rate expectations change, supporting the precious metal's price. However, a stronger US dollar limited gold's gains, as it makes gold more expensive for buyers using other currencies. Spot gold was up 0.3% at $4,153.56 per ounce, while US gold futures for December delivery gained 0.5% to $4,181.70.

Geopolitical tensions also kept investors focused on gold, with Yemen’s government launching a military campaign against Iran-backed Houthi forces. Silver prices in Pakistan rose Rs66 to Rs6,588 per tola, reaching a new all-time high. Internationally, spot silver increased 1.7% to $61.40 per ounce, platinum gained 1.1% to $1,716.92, and palladium rose 0.3% to $1,165.40.