KARACHI, Pakistan: Gold prices in Pakistan rose sharply on Monday, following gains in international markets amid expectations of a US Federal Reserve interest rate cut and concerns over weak global economic data.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), 24-karat gold was sold at Rs429,862 per tola, up Rs7,400 from the previous session.
Ten grams of 24-karat gold rose by Rs6,337 to Rs368,530. The price of 22-karat gold increased to Rs394,594 per tola, or Rs338,330 per 10 grams.
Silver prices also gained, with 24-karat silver trading at Rs5,209 per tola and Rs4,465 per 10 grams, up Rs115 and Rs98 respectively.
Global market support
The local surge mirrored movements in the international bullion market. Spot gold traded near $4,076 per ounce, up $64.90 or 1.62% from the previous session.
US gold futures for December delivery rose 1.3% to $4,062.40 per ounce. APGJSA reported the international rate at $4,075 per ounce with a $20 premium, marking an increase of $74 during the day.
Investors are seeking safe-haven assets amid growing concerns about a potential global economic slowdown and expectations that the US Federal Reserve may cut interest rates in December.
Spot silver also rose, reaching $49.79 per ounce, while platinum and palladium gained to $1,570.15 and $1,399.93 per ounce respectively.
Gold prices in Pakistan have experienced notable fluctuations in recent days. On Saturday, 24-karat gold fell by Rs600 per tola to Rs422,462, while 10 grams dropped Rs514 to Rs362,193.
Silver prices also dipped slightly, with per tola rates falling Rs18 to Rs5,094 and per 10 grams to Rs4,367.
Factors affecting gold prices in Pakistan
Analysts say domestic gold prices are influenced by global market trends, the value of the Pakistani rupee against the US dollar, local demand, and official updates from the APGJSA.
Seasonal factors such as weddings and festive periods typically push demand higher, particularly in major cities including Karachi, Lahore, and Islamabad.
With ongoing global economic uncertainty and potential policy easing by the US Federal Reserve, analysts expect gold and silver prices to remain volatile in the short term.
