Gold slips, silver hits record high
Gold prices in Pakistan fell slightly on Wednesday, mirroring losses in the international market, even as silver recorded fresh gains.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola closed at Rs443,162, down by Rs1,000 from Tuesday's level of Rs444,162, when it dipped by Rs2,700. Similarly, 10-gram gold was sold at Rs379,939, down Rs858.
In contrast, silver continued its upward momentum, rising Rs81 to reach Rs6,085 per tola. In the international market, silver edged 0.2% lower to $58.28 an ounce after touching a record high of $58.94. Globally, silver is up 101% this year due to concerns about market liquidity after outflows to the US stocks, its inclusion in the US critical minerals list and a structural supply deficit, Reuters reported.
"The strength in silver is due to supply concerns at the exchange levels," RJO Futures Senior Market Strategist Bob Haberkorn said, adding that the metal could touch the $60/oz milestone shortly.
Global gold markets also reflected mixed trends. Spot gold was up 0.1% at $4,209.31 an ounce by 10:03 am ET (1503 GMT), recovering slightly after a more than 1% drop in the previous session. US gold futures for February delivery increased 0.5% to $4,241.20, according to Reuters.
"This (Wednesday) morning's miss on ADP data, combined with silver hitting all-time highs overnight, is pushing gold up," said Haberkorn.
US private payrolls fell by 32,000 jobs in November, Wednesday's ADP employment report showed, missing economists' expectations for a 10,000-job increase. The dollar index dropped 0.5% to its lowest level since October 29, making gold more affordable for other currency holders. CME's FedWatch tool now shows an 89% chance that the US central bank will cut rates next week, while major brokerages also forecast an interest rate cut at the December 9-10 policy meeting.
Adnan Agar, Director at Interactive Commodities, said the local market was fluctuating without significant movement. "The low was $4,194, the high was $4,241, and the market was later trading near $4,220. There hasn't been any major shift," he explained.
He noted that market participants are closely watching upcoming US economic data, which is expected to influence the Federal Reserve's monetary policy next week. "The market is waiting for the US monetary policy – the main factor for the next direction. As long as the $4,100 level holds, the market remains strong," Agar added.
Meanwhile, the Pakistani rupee remained largely unchanged against the US dollar, settling at 280.46, with a one paisa increase day-on-day, according to Ismail Iqbal Securities. In the current calendar year to date, the rupee has depreciated by 0.68%, while on a fiscal-year-to-date basis, it has appreciated by 1.18%.