Gold prices in Pakistan rose on Tuesday, recovering some of the previous session’s losses as the precious metal gained in the international market.
The price of gold per tola increased by Rs900 to reach Rs440,836, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also climbed by Rs771 to Rs377,945.
On Monday, gold had lost Rs2,100 per tola, bringing the price down to Rs439,936.
In the international market, gold gained $9 to reach $4,183 per ounce, supporting the increase in local prices.
Silver prices, however, remained unchanged at Rs6,532 per tola.
Why gold prices are rising internationally
Gold edged higher on Tuesday as oil prices and the US dollar retreated, while investors awaited key US inflation data that could influence the Federal Reserve’s next interest rate decision.
Spot gold rose 0.4 per cent to $4,186.91 per ounce by 8:58 GMT, while US gold futures for December delivery gained 0.5 per cent to $4,211.30 per ounce.
Investors are closely watching a series of US economic reports due this week, including September inflation data, producer prices and retail sales. These figures could offer fresh clues about the direction of interest rates and the dollar, both of which influence gold prices.
Lower bond yields have also supported gold. Since the metal does not pay interest, it tends to become more attractive when returns on other investments fall.
However, uncertainty remains over the Federal Reserve’s policy direction. Cleveland Fed President Beth Hammack has called for a relatively quick move towards a more restrictive monetary policy to bring inflation under control.
Market expectations suggest that traders see a 17 per cent chance of a rate hike this month, while the probability of an increase in December stands at 87 per cent, according to CME’s FedWatch tool.
Despite the uncertainty, UBS analyst Giovanni Staunovo expects gold to find support from central bank diversification and concerns over rising government debt and debt-servicing costs. He said prices could stabilise before resuming their upward trend towards the end of the year and into 2027.
Other precious metals also recorded gains on Tuesday. Spot silver rose 0.2 per cent to $60.45 per ounce, platinum gained 0.9 per cent to $1,701.10, and palladium increased 0.5 per cent to $1,149.52 per ounce.
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