Gold prices witness massive increase in Pakistan as global bullion rates surge

Add ARY News on GoogleFollow on Google Discoverimage: fileAAResizeKARACHI: Gold prices in Pakistan surged on Friday, tracking a sharp recovery in international bullion rates, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The price of 24-karat gold increased by Rs5,900 per tola to Rs440,936.

Similarly, the price of 24-karat gold rose by Rs5,058 per 10 grams to Rs378,031, according to the association.

In the international market, gold prices increased by $59 to $4,184 per ounce.

Meanwhile, the domestic price of silver rose by Rs144 per tola to Rs6,512.

Globally, investors continued to monitor geopolitical developments in the Middle East and economic indicators for signals about the future direction of US Federal Reserve interest rates.

Gold is traditionally considered 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 the precious metal, which does not offer interest returns, 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 future monetary policy.

Oil prices fell on Friday as concerns over disruptions to Middle Eastern energy supplies eased after US President Donald Trump said Washington would not attack Iran before next month’s US midterm elections. The development came amid talks aimed at ending a war that has disrupted global energy markets.

“This strengthens the case for a Fed hold this month, weighing on the greenback and pulling yields back from their highs, creating prime conditions for a bullion recovery,” said Nikos Tzabouras, senior market analyst at Tradu.com, which is owned by Jefferies.

However, Tzabouras cautioned that gold remained vulnerable to further declines.

“Macro-geopolitical uncertainty and inflationary pressures persist, markets still expect Fed rate hikes ahead and bond yields remain elevated, keeping the opportunity cost of holding gold uncomfortably high,” he said.

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