Gold price soars by Rs7,700 per tola as global market rallies

Gold prices in Pakistan witnessed a sharp ascent on Tuesday, climbing Rs7,700 per tola. As per the All Pakistan Gems and Jewellers Association, the new rate for 24-karat gold is Rs436,562 per tola.

This upward momentum also pushed the price of 10 grams of gold up by Rs6,601, settling at Rs374,281.

In the international market, gold climbed to $4,142 per ounce. Local bullion rates have risen in tandem with gains in the global market. Spot gold edged up 0.1% to $4,141.49 per ounce early Tuesday, its highest level since November 14, extending Monday’s 1.8% rise.

US gold futures for December delivery also gained 1.1%, reaching $4,139.10 per ounce.

Analysts attribute the upward momentum to growing expectations of a US interest rate cut in December. Kelvin Wong, senior market analyst at OANDA, said the latest surge reflects “rising expectations of a rate cut, which has supported short-term gains in gold.”

Investors are closely monitoring key US indicators, including jobs data, retail sales, and consumer sentiment, to assess whether the Federal Reserve is more concerned about weakening demand than persistent inflation.

Federal Reserve Governor Christopher Waller has signaled that current labor market conditions could warrant another quarter-point rate cut in December, although any final decision depends on economic data delayed by the recent government shutdown.

These global trends, combined with local market dynamics, have driven gold and silver prices higher in Pakistan, signaling renewed investor interest in precious metals.