Gold up as global rates hit 3-month high

Jumps Rs4,200 to Rs487,136/tola; rupee inches up

KARACHI:

 

Gold prices in Pakistan rose on Monday, tracking a strong international rally that pushed the metal to its highest level in more than three months.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of 24-carat gold per tola reached Rs487,136 after gaining Rs4,200. Ten-gram gold was quoted at Rs417,640, up Rs3,601. On Saturday, the per-tola rate had risen Rs5,700. In the global market, spot gold rose 1.5% to $4,673.20 per ounce by 1535 GMT, its highest level since May 14. US gold futures for December delivery advanced 1.1% to $4,730.40 an ounce, as per Reuters.

The rally was driven by technical buying following the US Treasury's recent buyback announcement and a weaker dollar. Traders are also positioning ahead of this week's key inflation data and the Jackson Hole Symposium. US PCE figures are due on Wednesday, while attention is focused on Fed Chair Kevin Warsh's debut speech at the gathering. A press conference by the US treasury secretary on Iran was scheduled for 1700 GMT.

Interactive Commodities Director Adnan Agar said gold had built upward momentum. "$4,600 was the low, $4,680 was the high and later the market was at $4,660," he noted. Agar attributed the strength to issues around US Treasury yields and said the metal appeared headed towards $4,800. "Strong resistance is expected at that level, after which a correction of $500 to $600 remains possible."

Meanwhile, the Pakistani rupee closed at 277.55 against the US dollar in the inter-bank market, gaining a marginal Rs0.01. The dollar itself remained under pressure, hovering near multi-month lows after the US Treasury signalled plans to buy back more long-term bonds.