GOLD PER TOLA RATE IN PAKISTAN: Gold prices in Pakistan witnessed a notable increase on Friday, with the price of 24-karat gold rising by Rs1,800 to reach Rs276,200 per tola, according to the Karachi Sarafa Association. The price for 10 grams of 24-karat gold also climbed by Rs1,543, bringing it to Rs236,797. A day earlier!
In the global market, spot gold traded at $2,658 per ounce, reflecting a slight increase of $2.5, or 0.10%, from the previous session. The ongoing rise in gold prices is attributed to global economic uncertainties, leading investors to turn to precious metals as a safe-haven asset.
For those purchasing 22-karat gold, prices rose to Rs217,064 per 10-gram in Pakistan, indicating a steady upward trend.
Meanwhile, silver prices remained stable in the domestic market. The price for 24-karat silver stood unchanged at Rs3,050 per tola and Rs2,615 per 10 grams.
GOLD XAU/USD
Gold (XAU/USD) continues to trade sideways in the $2,660s on Friday, with investors anticipating the US Nonfarm Payrolls (NFP) report for September. Published by the US Bureau of Labor Statistics (BLS), this data is expected to significantly influence market direction, as it will shed light on the current state of the US labor market.
After Fed Chairman Jerome Powell’s August speech emphasized the labor market over inflation, the upcoming report is seen as crucial in determining the Federal Reserve’s future monetary policy. A weakening labor market, particularly a rise in unemployment, could prompt the Fed to consider a 50 basis points (bps) rate cut in November, which would likely support a surge in gold prices. On the other hand, stronger labor market data may cap gold’s gains, reducing the likelihood of aggressive rate cuts.
Currently, the market-based probability of a larger rate cut has fallen from 60% last week to just over 30%, according to the CME Fedwatch tool. Meanwhile, safe-haven demand for gold remains high due to geopolitical concerns in the Middle East and a global trend of falling interest rates.
Technical Outlook
Gold’s price is fluctuating within a narrow range between $2,673 and $2,638. A break above $2,673 could see gold resume its uptrend, potentially targeting $2,700. Conversely, a drop below $2,638 may lead to a further decline to $2,625, with the potential for a test of support at $2,600.
