KARACHI:
Gold prices in Pakistan advanced on Friday, following gains in the international market, where the precious metal was set for its best monthly performance since April. Global prices held steady as US inflation data reinforced expectations that the Federal Reserve could cut interest rates next month.
In the local market, the price of gold per tola rose by Rs1,200 to settle at Rs363,800, according to the All Pakistan Sarafa Gems and Jewellers Association. Similarly, the rate of 10 grams of gold increased by Rs943 to Rs311,814.
Interactive Commodities Director Adnan Agar said that global uncertainty was fueling the safe-haven demand. “Gold is trading near its highs as political tensions rise in the US, with President Donald Trump openly challenging the independence of the Federal Reserve. His confrontation with the central bank, including a court battle over a dismissed Fed member, has unsettled markets,” he noted.
Agar added that speculation about aggressive rate cuts has kept gold buoyant, with resistance seen around the $3,500 level.
On Thursday too, gold prices in Pakistan had gained ground as the per-tola rate closed at Rs362,600 after an increase of Rs900.
Spot gold was up 0.5% at $3,433.99 per ounce as of 10:20 am ET (1420 GMT). Bullion has gained 4.4% in August so far, according to Reuters. US gold futures for December delivery rose 0.7% to $3,497.30. The dollar held steady, but was set for a monthly drop of 2.1%. A lower dollar makes gold less expensive for overseas buyers.
The Pakistani rupee extended its upward trend on Friday, appreciating by 0.01% against the US dollar in the inter-bank market. The currency closed at 281.77, gaining three paisa from the previous day’s level of 281.80, marking its 16th straight session of gains.
At the end of trading, the rupee appreciated by 0.01% day-on-day against the greenback to settle at 281.77, whereas it has depreciated by 1.14% in the calendar year to date and appreciated by 0.71% in the fiscal year to date, according to Ismail Iqbal Securities.
It is pertinent to mention that the Asian Development Bank (ADB) has announced that it will provide Pakistan with a $3 million grant from its Asia-Pacific Disaster Response Fund to aid emergency flood relief operations.
Globally, the US dollar came under pressure, set for a nearly 2% monthly decline in August against a basket of major currencies. The weakness stemmed from growing expectations that the Fed could cut interest rates next month, coupled with lingering concerns over challenges to the Fed’s independence.