Gold up despite global market loss

Climbs Rs4,300/tola with lagged impact; rupee inches up to 277.11/$

KARACHI:

Gold prices in Pakistan increased on Wednesday despite a decline in international markets, with local rates reflecting a lagged impact of previous global price movements.

Gold price per tola rose Rs4,300 to reach Rs441,636, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10-gram gold increased by Rs3,686 to Rs378,631. On Tuesday, gold had declined Rs800 per tola. The increase in local prices came despite weakness in the international market, where gold surrendered earlier gains after briefly rising following the release of softer-than-expected US inflation data.

Spot gold was down 0.7% at $4,152.86 per ounce as of 1:40 pm ET (1740 GMT). The precious metal was down around 6.6% in September, putting it on track for a monthly decline. Higher energy prices have weighed on the metal, offsetting some support from inflation data that reduced expectations for an immediate Federal Reserve rate hike.

Market attention has now shifted towards upcoming US economic data, particularly employment figures due on Friday, which could provide fresh clues about the Federal Reserve's rate outlook.

Adnan Agar, Director at Interactive Commodities, said gold was currently trading within a range of around $4,100 to $4,200 per ounce, with the market awaiting the US employment data for a clearer direction. He noted that gold had recently traded as high as around $4,210, while the market was hovering near $4,154. According to Agar, the employment data will be important for determining whether the precious metal breaks out of its current range.

The US Personal Consumption Expenditures (PCE) Price Index rose 0.3% last month, while markets were pricing in a 39% chance of an October rate hike, according to the information cited in the market update.

Meanwhile, other precious metals also remained under pressure internationally, with gold, silver and platinum on track for monthly losses in September, although all three remained positioned for quarterly gains. In Pakistan, silver prices moved in the opposite direction of the international weakness in gold, increasing by Rs20 to Rs6,578 per tola. The divergence between domestic and international prices reflects the timing of local market adjustments, with Pakistani bullion rates not always moving simultaneously with global spot prices.

The Pakistani rupee closed at 277.11 against the US dollar on Wednesday, gaining Rs0.01 from Tuesday's close at 277.12. Globally, the US dollar remained near its 2026 high against the euro and was on track for its strongest monthly gain against the single currency in 14 months, supported by US economic growth and higher rates.