Gold prices soar in Pakistan, silver prices follow suit

KARACHI: Gold prices hovered near a seven-week high on Friday, supported by expectations that the US Federal Reserve will continue cutting interest rates next year. Prices in Pakistan followed the international trend, with per tola price hovering around Rs 455,000 and per 10 Gram Gold at Rs 390,100.

Although spot gold inched down to $4,275.44 per ounce, the metal still posted a 1.8 per cent weekly gain and remained close to Thursday’s peak, the highest level since October 21. US gold futures slipped marginally to $4,306.20.

The dollar weakened for a third straight week, making gold more affordable for buyers using other currencies and further strengthening bullion’s appeal. Despite the Fed’s recent dot plot suggesting only one cut in 2026, markets continue to price in two rate cuts.

The Federal Reserve reduced interest rates by 25 basis points on Wednesday, its third cut this year. Officials said future moves would depend on continued declines in inflation and signs of a cooling labor market. Weekly US jobless claims rose to their highest level in almost four and a half years, though analysts cautioned against interpreting this as a major weakening.

In other precious metals, silver surged to $63.84 per ounce, after hitting a fresh high of $64.31 on Thursday. Silver prices have more than doubled this year driven by strong industrial demand, shrinking inventories, and its recent addition to the US critical minerals list.

Platinum and palladium also advanced, both on track for weekly gains as momentum in the metals market remains broadly positive.