Gold price in Pakistan jumps Rs3,200 to Rs432,336 a tola
The gold price in Pakistan rose by Rs3,200 per tola on Monday to Rs432,336, as the metal gained in world markets on a weaker US dollar and easing worries about inflation. Ten-gram gold rose by Rs2,744 to Rs370,658, according to the All-Pakistan Gems and Jewellers Sarafa Association.
Gold had stayed flat on Saturday at Rs429,136 per tola. Monday’s jump takes the local price back up after a sharp fall in the previous session, when it dropped by Rs6,500 a tola. That swing shows how fast the market has moved in recent days.
The Express Tribune reported that the metal advanced ahead of US inflation data due later this week, which traders will watch for clues about the Federal Reserve’s next move on interest rates.
Gold price in Pakistan tracks gains in world markets
In world markets, spot gold was up 1.2 per cent at $4,116.15 per ounce by 11:30am ET, while US gold futures for December delivery also rose 1.2 per cent to $4,125.40, according to Reuters.
Market analyst Jim Wyckoff said the US dollar index had weakened at the start of the trading week, making dollar-priced bullion cheaper for buyers holding other currencies and lifting demand. He added that falling crude oil prices were also helping gold and silver by easing inflation worries and giving central banks more room for less tight monetary policy.
Oil fell sharply after US President Donald Trump played down the chance of fresh strikes on Iran, though attacks on ships near the Strait of Hormuz continued, keeping alive fears of disruption to world energy supplies. Costly energy has fed inflation worries since the US-Israel war with Iran began in late February. If inflation stays high, central banks may have to keep rates higher for longer, which hurts gold because it pays no yield.
The link to the dollar cuts both ways for Pakistani buyers. The rupee gained against the dollar recently, closing at Rs276.67, which softens the local impact of world gold gains. Even so, the tola price still rose by Rs3,200, because the world price moved further and faster than the currency.
What traders watch next
Investors now await US consumer price index (CPI) data, due on Tuesday, for fresh signs on inflation and the Federal Reserve’s next move. Traders were pricing in an 82.2 per cent chance of a Federal Reserve rate hike in December, according to estimates cited in international trading reports.
Central banks kept buying gold too. China’s central bank added about 25.8 tonnes to its reserves in October, a sign official demand remains strong.
Other precious metals rose too: spot silver climbed 1.6 per cent to $52.69 per ounce, platinum gained 2.1 per cent to $1,564.95, and palladium rose 0.2 per cent to $1,025.46. In Pakistan, silver rose by Rs55 to Rs5,723 per tola.
The stock market has also been strong. The PSX weekly rally lifted the KSE-100 by 7,477 points, its strongest weekly gain in six months. Gold and shares often move on different cues, but both have drawn buyers as the dollar softened and rate expectations shifted.
For buyers in Pakistan, the tola rate is the number that counts. At Rs432,336, gold costs Rs3,200 more than it did on Saturday, and the next move will turn on Tuesday’s US inflation figures and the dollar’s direction after them.
Frequently asked questions
What is the gold price in Pakistan today?
Gold costs Rs432,336 per tola, after a rise of Rs3,200 on Monday. Ten-gram gold costs Rs370,658, up Rs2,744.
Why did the gold price rise?
World gold gained 1.2 per cent as the US dollar weakened and oil prices fell, easing inflation worries. The local price tracks the world price and the rupee-dollar rate.
What was the gold price on Saturday?
Gold stayed unchanged on Saturday at Rs429,136 per tola, before Monday’s rise of Rs3,200.
What is the silver price in Pakistan?
Silver rose by Rs55 to Rs5,723 per tola. In world markets, spot silver climbed 1.6 per cent to $52.69 per ounce.
What could move gold prices next?
US consumer price index data due on Tuesday will shape views on inflation and Federal Reserve policy. Traders were pricing in an 82.2 per cent chance of a rate hike in December.
