Local gold prices rise again following global uptrend

KARACHI: Gold prices in Pakistan moved higher on Friday, echoing a strong rally in international markets where the metal is hovering near record highs amid growing expectations of interest rate cuts in the United States.

According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold rose by Rs2,500 to reach Rs386,500 per tola in the local market. The rate for 10-gram 24-karat gold also went up by Rs2,143, settling at Rs331,361. The price of 22-karat gold was quoted at Rs303,758 per 10-gramme.

Silver prices also climbed on Friday, with 24-karat silver trading at Rs4,456 per tola after an increase of Rs130, and Rs3,820 per 10-gram after a gain of Rs112.

International prices near record high

Globally, spot gold was seen trading around $3,650.23 an ounce by 1027 GMT, up 0.5 percent and edging close to the all-time high of $3,673.95 touched earlier this week. US gold futures for December delivery rose 0.4 percent to $3,689.10.

Analysts said growing concerns over a weakening US labour market have strengthened the belief that the US Federal Reserve will begin cutting interest rates this month, possibly followed by further reductions later in the year. Such expectations have pushed investors towards the safe-haven asset, driving prices higher.

UBS analyst Giovanni Staunovo said the market is increasingly convinced the Fed will start rate cuts at its next meeting, adding that US president Donald Trump’s repeated calls for lower rates have further supported gold’s appeal. He noted that exchange-traded funds have also seen fresh inflows in recent weeks, and predicted that gold could rise to $3,900 per ounce by mid-2026 if the current trend continues.

Fresh economic data showed US consumer prices rose 0.4 percent in August, the sharpest monthly jump in seven months, while weekly jobless claims surged to their highest level since October 2021. A Reuters poll of 107 economists showed almost unanimous expectations of a 25-basis-point rate cut by the Fed on September 17.

Local market has seen wild swings this month

Gold prices in Pakistan have seen sharp movements throughout September. The metal hit Rs370,700 per tola on September 1, then jumped to Rs376,700 by September 3. It touched Rs384,000 on September 8 and climbed to a record Rs388,100 on September 9 and 10. However, prices retreated to Rs384,000 on September 11 before rebounding to the current Rs386,500.

Market dealers say the local gold market has closely followed the international trend, while currency fluctuations have added to the volatility. They added that any significant movement in the rupee-dollar exchange rate could amplify price swings in the coming days.

Meanwhile, China’s central bank said on Friday it is seeking public feedback on plans to simplify the licensing system for gold imports and exports, which could make it easier for Chinese companies to trade gold and gold products internationally.

With gold up about 39 percent so far this year, investors and jewellery traders in Pakistan are keeping a close eye on the global market as it edges closer to uncharted territory.

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