Gold prices move higher with markets focused on US economic outlook

Gold prices saw a mild lift on Monday as investors positioned themselves ahead of a busy run of US economic data expected later this week. Traders are watching these indicators closely, hoping for clearer guidance on where the Federal Reserve might take interest rates next.

Spot gold edged up to around $4083.92 per ounce in early Asian hours, a small rise that analysts described as a natural correction after last Friday’s drop. Futures for December delivery slipped slightly to $4085.30 per ounce, showing that the market remains divided.

Analyst Tim Waterer from KCM Trade said last week’s selloff appeared harsher than the situation warranted, which is why prices managed a light recovery. He noted that reduced expectations of a rate cut next month continue to weigh on gold because the metal does not offer a yield.

Investors are now turning their attention to weekly US releases, including the September nonfarm payrolls report due on Thursday. With the recent government shutdown only just resolved, the Commerce Department is still adjusting its data calendar, adding another layer of uncertainty for markets.

Interest rate outlook remains unclear

Current market pricing shows traders see about a 46 percent chance of a quarter-point cut next month, slightly lower than last week. Several Fed officials have started expressing caution over further easing, pointing to persistent inflation concerns and a labour market that still appears relatively resilient after two cuts earlier this year.

Gold usually performs better in lower interest rate environments and during periods of economic unease, although the strong US dollar has been keeping buyers on the sidelines. The dollar index held its ground on Monday, limiting the appeal of gold for those dealing in other currencies.

SPDR Gold Trust, the world’s biggest gold-backed ETF, reported a drop in its holdings on Friday, slipping to 1044 metric tons from 1048.93 tons a day earlier.

Silver rose to $50.96 per ounce, marking an increase of 0.8 percent. Platinum also moved higher to $1552.36, while palladium jumped 1.7 percent to $1408.13 as buyers returned to the broader precious metals market.

Gold price in Pakistan

Gold prices in Pakistan recorded a sharp decline in the previous session on Saturday. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold dropped by Rs9,100 per tola, bringing the rate down to Rs430,662.

The price of 10 grams of 24-karat gold fell by Rs7,799 to Rs369,223, while 10 grams of 22-karat gold closed at Rs338,466.