Gold bounces back above $4,000 as weaker dollar fuels buying interest

WEB DESK: Gold prices bounced back on Tuesday, climbing above the key $4,000-per-ounce mark as investors regained confidence on expectations of further interest rate cuts by the US Federal Reserve and a softer dollar. The recovery came after the precious metal suffered its sharpest fall in over two weeks a day earlier.

By 0141 GMT, spot gold had risen 0.7 percent to $4,009.39 per ounce, recovering from Monday’s more than 3 percent plunge that had dragged it to its lowest level since October 10. US gold futures for December delivery edged up 0.1 percent to $4,022.10 per ounce.

Tim Waterer, chief market analyst at KCM Trade, said the recent dip in prices had drawn fresh buying interest from investors. “Buyers who were waiting on the sidelines for gold are now being tempted into taking positions at these price levels. Also, we are seeing a bit of softness from the dollar, which is giving gold a reprieve,” he said.

The US dollar index slipped 0.1 percent against major currencies, making gold more affordable for investors holding other currencies.

Gold price in Pakistan

Gold prices in Pakistan fell on Monday, tracking the downward trend in the international market. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs3,300 per tola, settling at Rs430,362.

Similarly, the price of 10-gram gold declined by Rs2,829 to Rs368,966.

Just two days earlier, on Saturday, gold prices had climbed by Rs1,800 per tola to reach Rs433,662. The latest dip reflects renewed pressure from the global market, where gold lost ground after recent gains.