Gold surges to Rs446,862 amid 6-week global high

International market eyes $4,400; rupee edges up to 280.51 vs dollar

KARACHI:

Gold prices in Pakistan rose on Monday, mirroring gains in the international market, where bullion reached a six-week high amid growing expectations of US rate cuts and a weakening dollar.

Locally, the price of gold per tola surged by Rs2,700 to reach Rs446,862. Similarly, 10-gram gold was sold at Rs383,112 after a gain of Rs2,315, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Saturday, gold per tola had closed at Rs444,162, rising Rs5,300 in a single day. Globally, spot gold climbed 0.3% to $4,244.29 per ounce, its highest since October 21, while US gold futures for February delivery increased 0.6% to $4,278.40, according to Reuters. Silver also jumped, increasing Rs54 to Rs5,963 per tola. Adnan Agar, Director of Interactive Commodities, said Monday's trading demonstrated a strong bullish momentum in the gold market.

Gold touched a high of $4,264 and a low of $4,215, with the market later hovering around $4,234. "This week is particularly important as multiple US economic statistics are scheduled for release, culminating in the Federal Reserve's monetary policy announcement next Wednesday," he explained.

Agar highlighted that gold has successfully breached a significant resistance level, increasing the likelihood of further upward movement. "The market has broken a key resistance, which opens the door for new highs. The next couple of weeks will be crucial. Depending on how the US data unfolds and the final monetary policy stance, gold could approach $4,400 and possibly establish fresh records," he said. Agar added, "Prices are likely to fluctuate in the short term, responding to economic indicators. Traders should closely watch upcoming US reports and policy decisions as they will heavily influence market sentiment and set the direction for the remainder of the month."

He also emphasised the growing investor interest in gold as a safe-haven asset amid global uncertainties. "With expectations of interest rate cuts and a weakening dollar, the probability of gold achieving new highs has increased. These two weeks are pivotal for the market and participants should monitor developments closely."

Meanwhile, the Pakistani rupee inched higher against the US dollar in the inter-bank market on Monday. It closed at 280.51, marking a modest gain of Rs0.01 against the greenback. Last week, the rupee continued its gradual upward trend, appreciating by Rs0.10, or 0.04%. The local currency ended the week at 280.52, up from 280.62 a week earlier, the State Bank of Pakistan (SBP) reported.