Gold prices increased in Pakistan on Wednesday despite mixed movements in international markets, as investors assessed fresh US economic data and its potential impact on the Federal Reserve’s monetary policy.
According to rates released by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold rose by Rs4,200 per tola, reaching Rs463,936. The price of 10-gram gold also increased by Rs3,601 to Rs397,750.
A day earlier, gold had closed at Rs459,736 per tola after gaining Rs2,400.
Gold Prices Track Global Market Developments
The increase in domestic gold prices came as international markets remained cautious. Spot gold was trading around $4,376.31 per ounce, down 0.3% at 1:50pm EDT, after reaching an intraday high of $4,434.84, its highest level since June 5.
The precious metal was also testing resistance around its 100-day moving average near $4,387.92, as investors looked for signals about the future direction of US interest rates.
Market participants had been closely monitoring US consumer price data for indications of whether the Federal Reserve could change its monetary policy stance.
US Inflation Data Supports Gold
Interactive Commodities Director Adnan Agar said gold was trading near $4,404 on Wednesday, with an intraday high of $4,440 and a low of $4,362.
According to Agar, the latest US inflation data was neutral and remained in line with the previous month’s reading. The stable inflation reading reduced expectations of an immediate Federal Reserve rate hike, providing support to gold prices.
He noted that weaker US employment data released the previous Friday, combined with stable consumer inflation, had lowered expectations of an immediate tightening move by the US central bank.
Agar said the market was now watching whether gold could sustain levels above $4,400 per ounce. If that level holds, gold could potentially target the $4,600-$4,700 range in the coming period. However, a loss of momentum could result in a pullback toward $4,250-$4,300.
Silver Prices Also Rise in Pakistan
Silver prices also moved higher in the domestic market. The price of silver increased by Rs146 per tola to Rs7,111.
Meanwhile, the Pakistani rupee continued its modest upward movement against the US dollar. The local currency closed at Rs277.66 per dollar, gaining one paisa from the previous close of Rs277.67.
In international markets, the US dollar remained largely stable during early Asian trading as investors awaited key inflation data, while renewed attacks on shipping routes in critical Middle Eastern waterways also remained a factor for global markets.
With domestic gold prices closely linked to international bullion rates, movements in global gold prices, the US dollar and the Pakistani rupee are expected to remain key factors influencing local bullion prices in the coming sessions.
