Gold prices moved higher in Pakistan on Monday as a rise in the international market pushed local rates up.
The price of gold climbed Rs1,200 per tola to Rs437,536, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also increased by Rs1,029 to Rs375,116.
The rise came after gold prices fell sharply on Saturday. The price of one tola had dropped Rs4,300 to Rs436,336 during the previous trading session.
Gold also gained in global markets, with the international rate rising $12 to $4,150 per ounce.
The move came as fresh US economic data reduced expectations of an interest rate hike by the Federal Reserve this month.
US job growth slowed more than expected in September. The government also revised payroll figures for the previous two months lower, pointing to some weakness in the labour market.
A weaker jobs market can support gold because investors often turn towards the precious metal when expectations for interest rates change.
“Soft labour market data has helped dial back October Fed hike expectations,” said Tim Waterer, chief market analyst at KCM Trade.
Markets now see only an 18 percent chance of a Fed rate hike in October, while the probability of a December increase remains much higher at 81 percent, according to the CME FedWatch Tool.
However, the stronger US dollar kept a lid on gold’s gains. A stronger dollar makes gold more expensive for buyers using other currencies.
Spot gold was up 0.3 percent at $4,153.56 per ounce, while US gold futures for December delivery gained 0.5 percent to $4,181.70.
Geopolitical tensions also continued to keep investors focused on gold. Yemen’s internationally recognised government said it had launched a major military campaign against Iran-backed Houthi forces.
Silver prices also climbed in Pakistan, rising Rs66 to Rs6,588 per tola. The latest increase pushed silver to a new all-time high in the local market.
In international markets, spot silver rose 1.7 percent to $61.40 per ounce. Platinum gained 1.1 percent to $1,716.92, while palladium rose 0.3 percent to $1,165.40.
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