Gold prices rebound on safe-haven demand in global market

Gold prices bounced back on Wednesday as investors stepped in to buy after the metal slipped to a near one-week low a day earlier. The recovery came as traders awaited fresh clues from upcoming US employment data to gauge the direction of interest rates.

Spot gold rose 0.9 percent to $3,965.49 per ounce by 0547 GMT, after tumbling more than 1.5 percent on Tuesday to its lowest level since October 30. US gold futures for December delivery were also up 0.4 percent at $3,974.10.

Investors eye ADP jobs data

Markets are now watching the US private payrolls report, which could shape expectations for the Federal Reserve’s next move. The Fed cut rates last week, and Chair Jerome Powell hinted it might be the final reduction this year.

Before Powell’s comments, investors saw over a 90 percent chance of another rate cut in December. That probability has now slipped to around 69 percent, according to CME’s FedWatch Tool.

The dollar, meanwhile, held near its three-month high, while Asian stocks extended losses following a selloff on Wall Street as investors fretted over stretched valuations.

Gold, often seen as a hedge against inflation and economic uncertainty, has dropped around 10 percent since hitting a record high of $4,381.21 on October 20.

In other precious metals, spot silver climbed 1.1 percent to $47.62 per ounce, platinum rose 0.2 percent to $1,537.94, and palladium was little changed at $1,397.59.

Gold prices sink in Pakistan

Gold prices fell across Pakistan on Tuesday, tracking a decline in the global market. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold dropped by Rs3,500 per tola to settle at Rs420,362, compared with Rs423,862 on the previous trading day.

Similarly, the price of 10 grams of 24-karat gold slipped by Rs3,001 to Rs360,392. The rate for 10 grams of 22-karat gold also declined by Rs2,859, closing at Rs330,263.

Silver prices also followed suit. The rate of silver per tola decreased by Rs130 to Rs5,022, while the price of 10 grams fell by Rs112 to Rs4,305. On the global front, silver was down $1.30, settling at $47.60 per ounce, the association reported.