Gold price cools off but stays near all-time peak in Pakistan

KARACHI: Gold prices in Pakistan eased slightly on Saturday, marking their second decline so far in September, as the international bullion market cooled off after days of notable gains.

Despite the slip, the precious metal continues to hover above the Rs386,000 mark per tola, showing how resilient domestic prices have remained in recent weeks.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola fell by Rs200 during the day, settling at Rs386,300. The price of 10-gramme gold also declined by Rs172 to reach Rs331,189.

This dip comes just two days after a much sharper fall on September 11, when gold dropped by Rs4,100 per tola to Rs384,000. Between these two drops, prices had briefly rebounded on Friday, jumping by Rs2,500 to hit Rs386,500 per tola before easing again today.

Silver prices also followed gold lower. The APGJSA noted that silver lost Rs13 per tola, bringing its price down to Rs4,443.

Global cues driving local prices

The moderation in local rates comes on the back of a mild retreat in global gold prices. International spot gold was last seen at $3,643 per ounce (with a $20 premium), down $2 on the day, as per APGJSA.

The small pullback followed a sharp rise on Friday when gold climbed 0.4 percent to $3,648.55 per ounce, staying close to Tuesday’s record high of $3,673.95. That rally had been fuelled by growing expectations that the US Federal Reserve might cut interest rates next week after a string of soft economic data suggested the American job market is cooling.

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Daniel Pavilonis, senior market strategist at RJO Futures, said weaker employment numbers combined with sticky inflation had pushed metals higher in recent sessions. “Markets are pricing in that the Fed will have to cut rates, and that’s lifting metals because there’s still the risk of longer-term inflation,” he said.

Recent figures have shown jobless claims rising, softer nonfarm payrolls, and revisions that erased nearly 911,000 jobs from the past year. At the same time, consumer prices in the US posted their biggest monthly gain in seven months in August, yet investors appear more focused on the weakening labour market than on persistent inflation when shaping their expectations.

A month of wild swings

Gold’s journey this month has been marked by sharp swings. It started September on a strong footing at Rs370,700 per tola and climbed rapidly, hitting an all-time high of Rs388,100 by September 9.

After stabilising at that peak on September 10, the metal tumbled to Rs384,000 on September 11, before staging a quick comeback to Rs386,500 on September 12. Today’s Rs200 decline to Rs386,300 signals that prices are once again consolidating, though they remain historically elevated.

Here is a look at gold’s daily movements so far this month:

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Analysts say local gold prices will likely remain volatile in the coming days, largely tracking global market shifts and the rupee-dollar exchange rate. If the US Federal Reserve moves ahead with its expected rate cut, it could push international gold to new highs, which may translate into higher prices in Pakistan as well.

For now, despite back-to-back dips this week, gold remains near its record territory, keeping investors and jewellery buyers watching the market closely.