Domestic gold prices increased by Rs1,200 per tola on Monday, settling at Rs437,536 as local benchmarks factored in the “lagged impact” of prior international price movements despite subdued day-to-day trading across global commodity exchanges.
Rates released by the All-Pakistan Gems and Jewellers Sarafa Association indicated an immediate rebound following Saturday’s steep Rs4,300 decline. Meanwhile, silver reached unprecedented valuation levels across domestic exchanges.
Key benchmark metrics from the day’s trading include:
- Gold per tola: Rose Rs1,200 to close at Rs437,536.
- 10-gram gold: Advanced Rs1,029 to settle at Rs375,116.
- Silver per tola: Gained Rs66 to establish a fresh all-time high of Rs6,588.
- Currency exchange: The Pakistani rupee appreciated by Rs0.01, concluding at 277.06 against the US dollar in the inter-bank market.
In global trading, precious metals remained largely range-bound as conflicting macroeconomic drivers neutralized upside momentum. Spot gold edged 0.1% lower to $4,137.79 per ounce, while US gold futures for December delivery gained 0.1% to settle at $4,166. Pressure from a firming US dollar index and 10-year US Treasury bond yields hovering near two-decade highs capped the investment appeal of non-yielding bullion, counterbalancing the impact of softening US rate-hike expectations.
“Gold could face a near-term decline before buyers return more strongly.”
Market sentiment continues to shift regarding US monetary policy after recent economic data underperformed consensus forecasts. Traders currently price in a 22% probability of a Federal Reserve rate hike in October, with the likelihood climbing to 84% for December. Market participants are positioning ahead of the release of the September Federal Open Market Committee minutes, which are anticipated to outline the central bank’s medium-term monetary tightening outlook.
Forex.com market analyst Fawad Razaqzada observed that bullion faces temporary downside pressure driven by the stronger dollar and high bond yields, while noting that disappointing macroeconomic metrics have effectively tempered aggressive rate bets. Over an extended horizon, Metals Focus projects gold to record new all-time highs by 2027, indicating that ongoing consolidation represents a transitional phase prior to renewed capital inflows into the metal.