Shafaqna Pakistan: Gold prices in Pakistan edged higher on Wednesday despite a softer trend in international markets, where the precious metal pared earlier losses after an unexpected decline in US producer prices.
According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold rose by Rs900 per tola to Rs425,036, while the price of 10 grams increased by Rs771 to Rs364,399.
The increase follows Tuesday’s sharp decline, when gold prices fell by Rs5,600 per tola to Rs424,136. The recovery reflects steady domestic demand despite continued fluctuations in global markets.
Internationally, spot gold was down 0.2% at $4,047.27 per ounce by 11:35 a.m. EDT (1535 GMT), after dropping nearly 1% earlier in the session. US gold futures also slipped 0.4% to $4,053.70.
The metal faced pressure after the US Producer Price Index (PPI) fell 0.3% in June, offering some relief on inflation concerns. However, worries about persistent inflationary pressures and elevated rates lingered.
Traders currently assign only a 10.2% probability of a Federal Reserve rate hike at its July meeting. Meanwhile, escalating geopolitical risks provided some support. The US has initiated a new wave of strikes against Iran, heightening concerns over potential disruptions in global energy supplies.
Silver prices in the local market remained stable at Rs6,289 per tola. Interactive Commodities Director Adnan Agar noted that gold was trading slightly lower again. “The market was trading at $4,030. Wednesday’s high for gold was $4,075, and the low was $4,017. There was downward pressure on gold, but it was also finding support near $4,000,” he said.
Agar added that developments in the coming days would be critical. “Let’s see if US-Iran tensions escalate further and crude oil, currently at $84, crosses this level and moves towards $90 or $94. Then there are chances for gold to come under further pressure,” he observed.
Analysts believe the interplay between the US monetary policy signals, producer price data, and Middle East tensions will continue shaping gold’s trajectory. A potential spike in oil prices due to supply risks could influence safe-haven demand for the yellow metal, though stronger-than-expected US economic data might keep interest rates higher for longer, capping gains.
Meanwhile, the Pakistani rupee held steady at 278.00 against the US dollar in the inter-bank market, up Rs0.01 from the previous close.
Source: Express Tribune
