GOLD PER TOLA RATE IN PAKISTAN: Gold prices in Pakistan saw a notable increase on Tuesday, with 24-karat gold rising by Rs1,300 per tola, reaching Rs261,700, according to the Karachi Sarafa Association. The price hike reflects the ongoing fluctuations in the precious metals market.
GOLD HOLDS ABOVE $2,500 AS MARKET AWAITS US INFLATION DATA AND FED RATE DECISION
Gold (XAU/USD) is trading just above the $2,500 mark on Tuesday, maintaining its recent range as traders anticipate crucial updates on US monetary policy. The performance of gold has been heavily tied to expectations surrounding interest rates, which are influenced by economic data and the Federal Reserve’s decisions.
US JOBS DATA CLOUDS FED RATE CUT EXPECTATIONS
Recent mixed US jobs data has cast doubt on market expectations of a 50 basis point (0.50%) cut to the Federal Reserve’s rate at the upcoming September 18 meeting. Gold, typically seen as a safe-haven asset, tends to gain when interest rates fall since lower rates make it more attractive to investors.
After the release of the Nonfarm Payrolls report last Friday, gold saw a rise followed by a quick dip. While the number of jobs added in August was lower than expected, wage growth exceeded forecasts, and the unemployment rate fell to 4.2%. This led to a decrease in the likelihood of a large rate cut, with market probabilities dropping from 40% to 30%.
GOLD FOCUSED ON US INFLATION AND GEOPOLITICS
Investors are now focused on upcoming US Consumer Price Index (CPI) and Producer Price Index (PPI) data for August, due on Wednesday and Thursday. These reports are expected to provide insight into the future path of interest rates. While some analysts argue that employment data is now more influential than inflation in determining the Fed’s moves, any surprises in the inflation figures could sway market sentiment.
Geopolitical risks are also keeping gold supported. The escalating conflict in Gaza and ongoing tensions in Ukrainecontinue to add to the safe-haven demand for gold, as investors seek protection from global uncertainties.
TECHNICAL ANALYSIS: GOLD IN SIDEWAYS RANGE AROUND $2,500
Gold continues to trade within a sideways range between $2,531 (all-time high) and $2,475. Currently, it sits near the middle of this range, showing no decisive breakout in either direction.
The longer-term trend for gold remains bullish, with an upside target of $2,550, which was set after the breakout from the July-August range. A break above $2,531 would likely confirm a continuation higher toward this target. Conversely, a drop below $2,460 could indicate a shift toward a more bearish outlook.
GOLD PRICES UP FOR 10-GRAM AND 22-KARAT GOLD LOCAL MARKET IN PAKISTAN
The price of 24-karat gold per 10-gram also rose, reaching Rs224,365 after an increase of Rs1,114. Additionally, 22-karat gold was priced at Rs205,668 per 10-gram, reflecting the overall upward trend in the gold market.
SILVER PRICES ALSO INCREASE
In addition to gold, silver prices in the domestic market experienced a rise. 24-karat silver was sold at Rs2,900 per tola, up by Rs50, while the price per 10-gram increased to Rs2,486, marking a Rs43 increase.
GLOBAL GOLD PRICES SHOW SLIGHT DECLINE
On the international front, spot gold traded near $2,506 per ounce, down by $0.5 or 0.02% from the previous session. This slight decline in global gold prices contrasts with the rising prices observed in Pakistan.
