Gold prices in Pakistan posted a modest recovery on Saturday, tracking a slight rise in international bullion markets as investors weighed easing oil prices and looked ahead to next week’s US Federal Reserve policy decision.
In the local market, the price of 24-karat gold climbed by Rs300 per tola to settle at Rs427,736, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The increase came a day after the precious metal had fallen sharply by Rs4,600 per tola.
The price of 10 grams of gold also moved higher, rising by Rs257 to Rs366,714.
On the global market, gold edged up by $3 to $4,053 per ounce, including a premium of $20. Spot gold traded around $4,052.78 per ounce, while US gold futures for August delivery settled 0.5% higher at $4,070.80.
Market sentiment improved after Brent crude oil retreated from above $100 a barrel, easing some inflation concerns that had unsettled investors. However, uncertainty surrounding the Middle East conflict continued to keep traders cautious.
Analysts said investors are now focused on the US Federal Reserve’s interest rate decision due next week. The central bank is widely expected to leave borrowing costs unchanged, although markets continue to price in a strong possibility of a rate increase later this year.
Independent metals trader Tai Wong said gold appeared to be building a base despite higher bond yields, adding that a Fed decision to keep rates unchanged could provide fresh support for bullion prices.
Analysts at ING also noted that recent gains in gold have been driven mainly by bargain hunting after the metal’s sharp correction from record highs earlier this year. They warned that elevated oil prices and rising bond yields could continue to limit any sustained recovery, with the $4,000-an-ounce level remaining an important support area.
Meanwhile, silver moved in the opposite direction in Pakistan, with its price falling Rs12 to Rs6,297 per tola.
Despite Saturday’s modest rebound, gold remains well below the record levels seen earlier this year, with global prices still under pressure from expectations that inflation linked to geopolitical tensions could keep interest rates higher for longer.
