Gold prices rise in Pakistan as global bullion rates rebound

Add ARY News on GoogleFollow on Google DiscoverPicture credit: ReutersAAResizeKARACHI: Gold prices in Pakistan rose on Thursday, tracking a recovery in global bullion prices after gold fell to a two-month low in the previous session.

The price of 24-karat gold increased by Rs600 per tola to Rs435,036, according to rates issued by the All Pakistan Sarafa Gems and Jewellers Association.

Similarly, the price of 24-karat gold rose by Rs515 per 10 grams to Rs372,973.

In the international market, gold prices increased by $6 to $4,125 per ounce, the association reported.

In contrast, the domestic price of silver fell by Rs120 per tola to Rs6,368.

Investors continued to monitor geopolitical developments in the Middle East and economic data for signals about the future direction of US Federal Reserve interest rates.

Gold is traditionally viewed as a hedge against inflation and a safe-haven asset during periods of economic and geopolitical uncertainty. However, higher interest rates can weigh on demand for gold, which does not generate interest, by making yield-bearing assets more attractive.

Investors were also assessing minutes from the US Federal Reserve’s September meeting for clues about the central bank’s interest-rate trajectory.

Fed policymakers were divided last month over the rationale for raising rates, with some participants viewing a rate hike as necessary to contain the impact of energy and other price shocks, while a more hawkish group considered higher rates necessary to guard against emerging demand-driven inflation, the minutes showed.

“Prices are wobbling above $4,100 as geopolitics stoke inflation fears and year-end Fed hike bets,” said Lukman Otunuga, senior research analyst at FXTM. He added that a stronger dollar and higher Treasury yields could put further pressure on gold.

On the geopolitical front, the number of vessels transiting the Strait of Hormuz fell to its lowest level in more than two months after attacks on tankers in the key waterway reached their highest level last week since the start of the Middle East war, according to shipping data.

ISLAMABAD: The deadlock between the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP) over cooperation on legislation has been resolved, ARY News reported, citing sources. As per details, the PPP has agreed to support the government in legislative matters in both the National Assembly and the Senate in the coming period. The two […]