Gold prices moved higher across Pakistan on Friday, tracking gains in the international bullion market and pushing the local price of the precious metal back above Rs430,000 per tola.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold increased by Rs3,000 during the day, taking the rate to Rs430,436 per tola.
The price of 10 grams of gold also climbed by Rs2,572 to Rs369,029.
The latest increase comes a day after gold gained Rs1,000 per tola, when it closed at Rs427,436 in the local market.
In the international market, gold was priced at $4,080 per ounce, including a premium of $20, after rising by $30.
Silver prices also moved higher locally. The price of silver increased by Rs79, taking it to Rs6,294 per tola.
Globally, however, gold edged lower on Friday as some investors booked profits after recent gains and the US dollar recovered from the sharp losses recorded a day earlier. Spot gold slipped 0.7 percent to $4,075.35 per ounce, while US gold futures for August delivery eased 0.6 percent to $4,074.
Despite Friday’s decline, the precious metal remained on track for its first monthly gain in five months, with prices up around 1.7 percent in July. Analysts said buyers repeatedly stepped in whenever prices approached the $4,000 per ounce level, helping gold maintain its upward momentum.
Tim Waterer, Chief Market Analyst at KCM Trade, said the pullback was mainly driven by profit taking and a stronger US dollar following Thursday’s sharp decline in the greenback. He added that demand around the $4,000 mark had provided solid support for gold throughout the month.
Investors are also closely watching US monetary policy after the Federal Reserve kept interest rates unchanged this week. Markets are currently pricing in a 65 percent chance of a rate increase in September, according to CME Group’s FedWatch Tool.
Meanwhile, renewed geopolitical tensions in the Middle East continued to keep gold in focus as a safe haven asset. A drone strike that caused fires on two gas vessels at Egypt’s Mediterranean port of Damietta has raised fresh concerns over shipping through the Suez Canal, adding to uncertainty linked to the expanding US-Iran conflict.
Other precious metals also traded lower in the international market. Spot silver fell 1.5 percent to $58.12 per ounce, while platinum and palladium also declined during the session, although both remained on course to post monthly gains.
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