After climbing to fresh records in recent days, gold finally eased in Pakistan on Friday, mirroring the decline seen in international markets.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola fell by Rs2,500, settling at Rs407,778. The price of 10 grammes also dropped by Rs2,144, bringing it to Rs349,603.
Just two days earlier, on Wednesday, the precious metal had surged to an all-time high of Rs410,278 per tola, following a sharp single-day rise of Rs3,500.
International market movement
The dip in local prices came in step with global trends. Internationally, gold slipped to $3,865 per ounce (including a $20 premium), down by $25 from earlier levels, according to APGJSA.
Silver, however, moved in the opposite direction, with its price per tola rising by Rs13 to Rs4,839.
Gold still near record high globally
Despite Friday’s decline, global prices remain close to historic highs. Spot gold was steady at $3,866.05 per ounce at 0357 GMT, holding near Wednesday’s record of $3,895.09.
US gold futures for December delivery edged down 0.2 percent to $3,891.40. Analysts say expectations of further US interest rate cuts and political uncertainty are still supporting demand for the safe-haven metal.
On Thursday, gold prices had already shown resilience, staying near record levels as investors turned to the precious metal amid weak economic data and political turmoil in Washington. Spot gold edged 0.2 percent higher to $3,871.99 per ounce by 0632 GMT, while US gold futures were flat at $3,896.70.
Weak jobs data lifts Fed rate cut hopes
The earlier uptick came after disappointing private employment data in the US renewed expectations of interest rate cuts by the Federal Reserve. According to payroll processor ADP, private sector jobs fell by 32,000 in September, extending a slowdown that followed a downwardly revised 3,000 drop in August.
This report strengthened market bets that the Fed will cut rates soon. The CME FedWatch tool showed traders almost certain of a 25-basis point reduction this month. A weaker dollar and lower borrowing costs usually work in favour of gold, making it more attractive than bonds and other interest-bearing assets.
US shutdown fuels demand for safe haven
Political tensions have further lifted gold’s appeal. The US government has entered a partial shutdown after lawmakers failed to agree on a funding deal, putting thousands of federal jobs at risk and threatening delays to key economic reports, including the closely watched non-farm payrolls due on Friday.
Matt Simpson, senior analyst at City Index, said the mix of weak data and political chaos has kept gold buoyant. “Speculators are chasing the move higher,” he noted, adding that fund managers have increased their long positions but are still not at extreme levels.
Analysts see more upside ahead
Some policymakers remain cautious. Chicago Fed President Austan Goolsbee expressed concern about inflation, saying he wants to be “careful” about how quickly rates are lowered.
Even so, analysts expect more strength ahead. Goldman Sachs recently raised its outlook, saying the risks to its $4,000 per ounce mid-2026 target and $4,300 December 2026 forecast have grown due to stronger investor demand and speculative interest.
Backing that view, SPDR Gold Trust, the world’s largest gold-backed ETF, reported a 0.59 percent rise in holdings on Wednesday, the highest since July 2022.
Other precious metals also gained, with silver up to $47.38 per ounce, platinum climbing to $1,567.41, and palladium jumping 2.4 percent to $1,274.68.
Record-breaking rally in Pakistan
In Pakistan, gold’s rally has been relentless. On October 1, the first trading day of the month, local prices hit a record Rs410,278 per tola, climbing by Rs3,500 in a single day, according to APGJSA.
The price of 10 grammes also rose sharply by Rs3,001 to Rs351,747. This came just after September closed at Rs406,778 per tola, with Tuesday alone seeing a gain of Rs3,178.
The constant surge has made gold the talk of the town among jewellers and investors, as the metal continues to set new records almost daily. But for many households, the rising price has pushed gold further out of reach, making jewellery purchases for weddings or savings increasingly difficult.
