Gold prices in Pakistan extended their upward run on Monday, with local rates climbing alongside firm international bullion prices as investors continued to favour safe-haven assets.
The price of gold rose by Rs800 per tola to reach Rs457,366 in the local market, according to the All-Pakistan Gems and Jewellers Sarafa Association. The rate for 10 grams also increased by Rs685, taking it to Rs392,091.
The latest gain follows Saturday’s rally, when gold jumped Rs2,200 per tola to settle at Rs456,536.
Silver also moved higher, adding Rs77 to reach Rs6,903 per tola.
The local market tracked international prices, where gold remained close to its highest level in seven weeks. Spot gold edged up 0.1 percent to around $4,345 per ounce, while the official rate used by Pakistani jewellers stood at $4,349 per ounce, including a $20 premium.
The recent strength in bullion comes after weaker-than-expected US jobs data changed expectations for the Federal Reserve’s next policy move. July’s employment report showed the US economy unexpectedly lost jobs, while payroll figures for the previous two months were revised sharply lower.
That has reduced market expectations of another interest rate increase in September, making gold more attractive to investors. Unlike bonds and other income-generating assets, gold does not pay interest, so it often performs better when borrowing costs are expected to stay lower.
Markets are now waiting for fresh US inflation figures due later this week. Consumer price data will be released on Wednesday, followed by producer inflation on Thursday. Analysts expect July inflation to ease slightly from 3.5 percent to 3.4 percent, a reading that could further shape expectations for US interest rates.
Investors are also keeping a close eye on developments in the Middle East. Iran said it is close to finalising an agreement with Oman on new shipping lanes through the Strait of Hormuz, although it maintained that several US conditions must be met before the strategic waterway can fully reopen.
The combination of economic uncertainty and geopolitical tensions has continued to support demand for gold in both global and local markets.
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