Gold Rates in Pakistan Surge as International Prices Rebound on Weak US Jobs Data

Gold Rates in Pakistan Surge as International Prices Rebound on Weak US Jobs Data

Gold rates in Pakistan moved sharply higher this week, tracking a strong rebound in the international bullion market after weaker-than-expected US employment data dampened expectations of further interest rate hikes by the Federal Reserve.

In the global market, the gold rate jumped above $4,100 per ounce on Thursday, recovering from an eight-month low, before extending gains toward $4,200 per ounce on Friday. The precious metal touched roughly $4,170 per ounce, its highest level in nearly two weeks, and posted a weekly gain of around 2 percent — snapping a streak of four consecutive weekly declines.

What Drove the Rally?

The main trigger was the June US jobs report. The American economy added just 57,000 jobs, the fewest in four months and well below forecasts of around 110,000. The disappointing data prompted traders to scale back bets on a September rate hike, with the probability falling from roughly 67 percent to under 50 percent, according to Fed funds futures.

Since gold is a non-yielding asset, lower interest rate expectations reduce the opportunity cost of holding it, making the metal more attractive to investors. The US dollar also weakened, heading for its largest weekly decline since April — a move that further supported the gold rate worldwide.

Additional tailwinds came from easing inflation concerns, as increased oil shipments through the Strait of Hormuz and progress in indirect US-Iran talks pushed crude prices lower. On the demand side, central banks added a net 41 metric tons of gold to their reserves in May, according to World Gold Council data, underscoring continued institutional appetite for the metal.

Impact on Gold Rates in Pakistan

The rally in the international market was quickly reflected in gold rates in Pakistan. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the gold price per tola rose by Rs9,100 in a single day on Thursday to reach Rs428,736, while 10-gram gold climbed to Rs367,572.

The upward momentum has continued into this week. The 1 tola gold price in Pakistan for 24-karat gold is now hovering around Rs440,000–441,000, while 22-karat gold is trading near Rs404,000 per tola. Over the past seven days, local prices have gained more than 2 percent.

It is worth remembering that gold rates in Pakistan depend on two key factors: the international gold price in US dollars and the USD/PKR exchange rate. Even when global prices remain flat, any depreciation of the rupee can push domestic rates higher. Anyone tracking the live gold rate in Pakistan should therefore keep an eye on both the international spot price and currency movements.

Outlook

With markets now pricing in a softer Fed stance, analysts expect gold to remain well supported in the near term, though volatility is likely around upcoming US economic data. For local buyers and investors, checking the live gold rate in Pakistan before making a purchase remains essential, as daily swings of several thousand rupees per tola have become common in the current environment.

Note: Rates mentioned are indicative and may vary slightly across cities and jewellers. Always confirm the latest gold rate with your local Sarafa market before buying or selling.