Gold prices in Pakistan climbed on Monday, recovering from the previous session, when they fell to their lowest level since mid-July. The rise followed gains in the international bullion market, while lower oil prices eased some concerns about inflation.
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association, 24-karat gold per tola rose by Rs1,400 to Rs423,436. The association said 24-karat gold per 10 grams went up by Rs1,201 to Rs363,028, and 22-karat gold gained Rs1,101 to Rs332,787 per 10 grams.
Silver and international bullion prices also move higher
Silver also posted gains in the domestic market. Silver per tola increased by Rs20 to Rs5,878, while 24-karat silver per 10 grams rose by Rs17 to Rs5,039.
Also read: Pakistan gold rate drops to five-month low on Saturday · Gold prices drop in Pakistan as oil rises amid global uncertainty
Internationally, gold climbed by $14 to $4,009 per ounce, and silver added $0.20 to reach $54 per ounce, the association said.
Analysts link the rally to oil and interest rate expectations
Kyle Rodda, a senior financial market analyst, said the jump mostly reflected relief from lower oil prices. He warned that the gain could be capped as markets positioned themselves ahead of the FOMC decision due in a couple of days.
“Gold will continue to trade as a function of interest rate expectations and geopolitical risks,” he added.
Oil prices fell on Monday after nearing six-month highs last week, driven by hopes of easing hostilities between the United States and Iran. However, continued attacks on Saudi Arabia by Yemen’s Houthi movement kept concerns about energy supplies in focus.
Gold has faced pressure despite its traditional role as a safe-haven asset. Market volatility, the Iran war, high energy prices, artificial intelligence-related technology stocks and rising government debt have all weighed on the metal.
Investors await US inflation data and Gulf diplomacy
Investors are now looking to US Personal Consumption Expenditures (PCE) inflation data, the Federal Reserve’s preferred inflation gauge, which is scheduled for release on October 29. The figures are expected to show further progress towards the central bank’s 2% inflation target.
Meanwhile, Qatari mediators were in Tehran on Sunday to help ease regional tensions in coordination with the United States, an official briefed on the situation said.
