Gold prices in Pakistan rose sharply on Thursday, tracking a strong increase in the international market as investors watched movements in the US dollar and interest rate expectations.
The price of gold climbed by Rs11,200 per tola to Rs465,236, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also increased by Rs9,602, reaching Rs398,864.
The latest jump came a day after gold prices fell Rs11,300 per tola on Wednesday, when the price settled at Rs454,036.
In the international market, gold rose by $112 to $4,427 per ounce, including a $20 premium.
Gold prices also gained in global trading on Thursday as the US dollar and Treasury yields pulled back from recent highs. Investors are now waiting for key US jobs data that could influence the Federal Reserve’s decision on interest rates this month.
Spot gold was up 0.9 percent at $4,425.83 per ounce by 1046 GMT, while US gold futures gained 1.3 percent to $4,472.
UBS analyst Giovanni Staunovo said a weaker dollar and lower US interest rates were supporting gold. He added that the metal remained sensitive to changing expectations around the Federal Reserve’s September meeting.
Markets are currently pricing in about a 60 percent chance of a rate hike later this month, according to the CME FedWatch Tool.
Investors are now focused on Friday’s non-farm payrolls report. A weaker-than-expected jobs report could reduce rate hike expectations and give gold prices further support.
In the local market, silver also became more expensive, rising Rs185 to Rs7,044 per tola.
In global markets, spot silver gained 0.5 percent to $65.61 an ounce, while platinum rose 0.2 percent to $1,763.88 and palladium climbed 1.4 percent to $1,363.56.