KARACHI: Gold prices remained unchanged in Pakistan on Tuesday, while international bullion prices rose for a third straight session as expectations of a US interest rate increase weakened.
According to the All Pakistan Sarafa Market and Jewellers Association, the price of 24-karat gold held at Rs461,936 per tola.
The price of 10 grams of 24-karat gold also remained unchanged at Rs396,035.
Silver prices, however, fell by Rs43 per tola to Rs6,986.
International gold price
In international markets, spot gold rose 0.2% to $4,424.28 per ounce by 0130 GMT. US gold futures for December delivery also gained 0.2% to $4,480.90 per ounce.
Gold has gained support from weaker-than-expected US economic data. The figures have reduced expectations of another Federal Reserve rate increase.
The US dollar also remained near multi-month lows against a basket of major currencies. A weaker dollar makes gold cheaper for buyers using other currencies and can support demand.
IG market analyst Tony Sycamore said softer US economic data released last week had supported gold’s recent gains.
Gold generally benefits when interest rates fall or remain lower. The metal does not pay interest or dividends. Lower yields therefore reduce the opportunity cost of holding bullion.
A recent Reuters poll showed that most economists expect the Federal Reserve to keep its benchmark interest rate unchanged at its next meeting and through the end of the year.
Market expectations have shifted sharply in recent weeks. Traders now see about a 65% chance that the Fed will keep rates unchanged in September.
The shift followed unexpected job losses in July, weaker-than-expected consumer inflation and soft retail sales data.
Investors are now awaiting the minutes of the Federal Reserve’s latest policy meeting. The minutes are due on Wednesday and could offer clues about the central bank’s views on inflation, employment and future rate moves.
Geopolitical tensions have also supported demand for gold as a safe-haven asset.
Sycamore said bullion was regaining some of its safe-haven appeal despite higher bond yields. Renewed tensions between Iran and the United States have added to market uncertainty.
A senior Iranian official told Reuters that Tehran would adopt a “fully offensive” military posture after talks with Washington stalled.
The United States has also ruled out extending a temporary ceasefire arrangement, adding to uncertainty in global financial markets.
Higher geopolitical risks often encourage investors to seek defensive assets such as gold, particularly when economic and monetary policy uncertainty remains elevated.
