Gold soars as dollar weakens after US polls

Surges Rs13,900 to Rs426,036/tola; globally bullion reclaims $4,000

KARACHI:

Gold prices surged in Pakistan on Wednesday, gaining a whopping Rs13,900 per tola to reach Rs426,036, as bullion rallied in the international market amid a weakening US dollar following Democrats' sweeping victory in the US midterm elections.

According to rates released by the All-Pakistan Gems and Jewellers Sarafa Association, the price of 10-gram gold increased Rs11,917 to Rs365,257. In the international market, gold prices climbed $139 to $4,035 per ounce. Spot gold surged 2.9% to $4,040.15, while US gold futures for December delivery gained 2.8% to $4,049, as per Reuters.

The rally pushed spot gold back above the psychologically important $4,000 threshold after it had fallen to $3,869.85 on October 30, its lowest level since October 2025. Market sentiment shifted after Democrats secured control of both chambers of the US Congress in the midterm elections, sending the dollar to a more than one-month low. The weaker greenback made dollar-denominated bullion cheaper for overseas buyers, supporting international demand.

Investors are also closely monitoring the upcoming US nonfarm payrolls report for signals about the Fed's rate outlook. Expectations surrounding monetary policy remain an important driver of gold prices.

Adnan Agar, Director at Interactive Commodities, said gold had witnessed a significant jump, partly driven by the Democrats' victory in the US elections. He said uncertainty surrounding the Iran war and the possibility of a ceasefire could also influence the precious metal's next move. However, he cautioned that the conflict might not end soon, making geopolitical developments particularly important for market direction.

Agar said international gold would need to cross $4,150 per ounce to establish proper price stability. Conversely, a decline below $3,970 could put the metal under pressure again.