Gold price slips as dollar strengthens but remains on track for third monthly gain

WEB DESK: Gold prices slipped on Friday as the dollar held firm, with traders weighing the Federal Reserve’s cautious stance on future rate cuts. Despite the pullback, bullion remained on track to notch its third consecutive monthly gain, supported by lingering economic uncertainty and steady investor demand.

Spot gold fell 0.5 percent to $4,004 per ounce in early Asian trade, while US gold futures for December delivery stayed flat at $4,016.70. Even so, gold has gained nearly 4 percent this month, reflecting resilient investor interest despite shifting policy expectations.

Tim Waterer, chief market analyst at KCM Trade, said the Fed’s recent tone was less favourable for gold. “The Fed Chairman did have his hawkish cap on this week which didn’t do gold any favours,” he noted. “The prospect of a rate cut in December now looks much more uncertain, which has boosted the dollar and made things trickier for gold from a yield perspective.”

The dollar index hovered near a three-month high, making gold more expensive for buyers holding other currencies. The greenback’s strength followed Wednesday’s quarter-point rate cut by the US central bank, which lowered the benchmark rate to a range of 3.75 to 4.00 percent. However, comments from Fed Chair Jerome Powell cooled expectations of another reduction in December.

According to the CME Group’s FedWatch tool, markets now see a roughly 75 percent chance of another 25-basis-point cut in December, down from more than 90 percent a week earlier. Analysts say this uncertainty has lent support to the dollar while tempering gold’s momentum.

Meanwhile, holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 0.42 percent to 1,040.35 tonnes on Thursday, signalling ongoing investor interest in bullion.

In other precious metals, spot silver held steady at $48.94 per ounce, platinum edged up 0.2 percent to $1,614.53, and palladium gained 1.7 percent to $1,469.63.

Despite the day’s decline, analysts say gold remains underpinned by global economic uncertainty, and any signs of slowing growth or policy easing could reignite buying interest in the coming weeks.

Gold price in Pakistan decreases

The price of gold in Pakistan on Thursday (October 30), even as global rates edged higher, reflecting the usual tug-of-war between international trends and local market dynamics.

Data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) showed that the price of 24-karat gold dropped by Rs1,000, settling at Rs418,862 per tola. The price of 10 grams of 24-karat gold also fell by Rs857 to Rs359,106.

For those keeping track of 22-karat gold, the metal was being traded at Rs329,300 per 10 grams across local markets.

While gold cooled off, silver stayed calm. The price of 24-karat silver held steady at Rs5,034 per tola and Rs4,315 per 10 grams, unchanged from the previous session.