Gold Per Tola Rate in Pakistan: On Wednesday, the price of 24 karat gold surged by Rs. 2,300, selling at Rs. 264,000 per tola compared to Rs. 261,700 on the previous trading day, according to the All Sindh Sarafa Jewellers Association.
10 GRAM GOLD PRICES FOLLOW UPWARD TREND
The price of 10 grams of 24 karat gold also increased, climbing by Rs. 1,972 to Rs. 226,337 from Rs. 224,365. Similarly, the price of 10 grams of 22 karat gold rose to Rs. 207,476 from Rs. 205,668.
SILVER PRICES REMAIN STABLE
In contrast to gold, the price of silver remained unchanged. Per tola silver held steady at Rs. 2,900, while 10 grams of silver remained at Rs. 2,486.28.
INTERNATIONAL GOLD PRICES EDGE HIGHER
In the international market, the price of gold saw an increase of $23, reaching $2,546, up from $2,523, as reported by the Association.
GOLD PRICES CLIMB TOWARDS THREE-WEEK HIGH AMID FED RATE CUT SPECULATIONS
Gold prices (XAU/USD) edged closer to $2,530 on Wednesday, as the precious metal continues to oscillate within its three-week trading range. The movement reflects investor uncertainty about the size of the upcoming Federal Reserve interest rate cut during the September 17-18 meeting. While a 25 basis point cut is widely expected, some speculate that the Fed might opt for a larger 50 basis point reduction, which would make Gold more appealing as a non-interest-bearing asset.
MIXED US DATA FAILS TO SETTLE INTEREST RATE DEBATE
Last Friday’s mixed US NonFarm Payrolls data did little to clarify the size of the rate cut, leaving markets on edge. The upcoming release of the US Consumer Price Index (CPI) for August is usually seen as a decisive factor in shaping Fed expectations. However, analysts disagree on its significance this time, with some suggesting that inflation has slowed enough to reduce its impact on decision-making.
Ulricht Leutchmann, FX Analyst at Commerzbank, argues, “The CPI figure is no longer as overwhelmingly important as it was a few months ago. Core inflation has dropped to 1.6% annualized, well below the Fed’s target.”
On the other hand, Elias Haddad from Brown Brothers Harriman states that stronger-than-expected inflation could lower the chances of a larger rate cut and strengthen the US Dollar (USD), which often weakens Gold.
FALLING OIL PRICES EASE INFLATIONARY PRESSURES
Jim Reid of Deutsche Bank highlights the recent drop in crude oil prices as a key factor reducing inflationary pressures, potentially influencing the Fed’s decision. WTI crude oil has fallen to the mid-$60s, further dampening inflation concerns.
WEAKER US DOLLAR SUPPORTS GOLD PRICES
Gold is also benefiting from a weaker USD, with the Greenback under pressure following the Trump-Harris presidential election debate. Analysts largely agree that Kamala Harris’s performance diminished market confidence in Trump’s strong-dollar policies. The geopolitical backdrop, including rising tensions in Gaza and Ukraine, is also driving demand for Gold as a safe-haven asset.
TECHNICAL OUTLOOK: GOLD EYES ALL-TIME HIGH
Gold remains in a sideways range but is nearing its all-time high of $2,531. A break above this level could propel the precious metal toward a bullish target of $2,550, which was generated after its breakout from the July-August range.
However, if Gold dips below $2,460, it may challenge the current bullish trend.
