Gold prices in Pakistan rose for the seventh consecutive session on Wednesday, continuing an upward trend that has been in place since August 5 as stronger international prices pushed local rates higher.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold increased by Rs4,200 per tola to Rs463,936. The price of 10 grams also climbed by Rs3,601 to Rs397,750.
The latest increase followed Tuesday’s gain of Rs2,400 per tola, when gold closed at Rs459,736.
In the international market, gold rose by $42 to $4,415 per ounce, including a premium of $20. During early trading, spot gold gained 0.6 per cent to $4,391.82 per ounce, while US gold futures for December delivery were up 0.2 per cent at $4,451.90.
The precious metal has remained well supported after weaker than expected US jobs data reduced expectations of an interest rate hike by the Federal Reserve. Investors are now waiting for the latest US Consumer Price Index figures, which could offer fresh clues about the central bank’s next policy move.
Kelvin Wong, Senior Market Analyst at Oanda, said lower expectations of a Fed rate hike remained the main factor supporting gold prices. He added that a technical breakout above the $4,200 level last week had further strengthened buying momentum.
According to the CME FedWatch Tool, traders are now pricing in a 50 per cent chance of a rate hike in September, down from 60 per cent before the release of the latest US employment data. Gold typically benefits when expectations for higher interest rates ease because the metal does not offer interest returns.
Meanwhile, silver prices also moved higher in Pakistan. The price of silver increased by Rs146 per tola to Rs7,111.
In international markets, spot silver gained 0.8 per cent to $65.20 per ounce. Platinum rose 0.2 per cent to $1,748.03 per ounce, while palladium added 0.8 per cent to $1,370.75 per ounce.