Pakistan Gold Prices Surge Despite Flat International Market

Gold prices in Pakistan saw a significant rise on Monday, despite a relatively flat international market. The price of gold per tola increased by Rs1,200, reaching Rs437,536, according to the All-Pakistan Gems and Jewellers Sarafa Association. The price of 10-gram gold also climbed by Rs1,029 to Rs375,116. This surge comes after a drop of Rs4,300 per tola on Saturday, reflecting the local market's delayed reaction to previous global movements.

The international gold market remained steady, with spot gold edging 0.1% lower to $4,137.79 per ounce. US gold futures for December delivery saw a slight gain of 0.1% to $4,166. The stronger US dollar and elevated Treasury yields put pressure on gold prices, making dollar-denominated gold more expensive for buyers holding other currencies. However, reduced expectations of a Federal Reserve rate hike this month provided some support.

Market participants are now awaiting the release of the September Federal Open Market Committee minutes on Wednesday, which could offer further insights into the central bank's rate outlook. Analyst Fawad Razaqzada from Forex.com suggested that gold could face a near-term decline before stronger buying resumes, citing the rising dollar and elevated bond yields. Despite this, longer-term expectations remain bullish, with Metals Focus predicting new all-time highs for gold by 2027.

Silver prices in Pakistan also rose, with the price per tola increasing by Rs66 to Rs6,588, marking a new all-time high. The Pakistani rupee closed at 277.06 against the US dollar, gaining Rs0.01 in the inter-bank market.