Gold up as global rates hit 3-month high

Gold prices in Pakistan climbed on Monday, following a strong international rally that lifted the metal to its loftiest point in over three months. According to the All-Pakistan Gems and Jewellers Sarafa Association, the 24-carat price per tola reached Rs487,136 after an increase of Rs4,200. The 10-gram price stood at Rs417,640, rising Rs3,601, while the tola rate had jumped Rs5,700 a day earlier.

Citing Reuters, The Express Tribune reported that spot bullion rose 1.5%, trading at $4,673.20 an ounce by 1535 GMT, a level not seen since May 14. December-delivery US gold futures added 1.1%, reaching $4,730.40 an ounce. The gains were credited to technical buying after the US Treasury announced a buyback, along with a softer dollar, and traders are positioning ahead of this week's inflation figures and the Jackson Hole Symposium, where Fed Chair Kevin Warsh is set to make his debut speech.

Adnan Agar, Interactive Commodities Director, said gold was gaining momentum, with prices moving between $4,600 and $4,680 before easing to $4,660. He linked the move to concerns over US Treasury yields. Separately, the rupee closed at 277.55 against the dollar in the inter-bank market, edging up Rs0.01, as the greenback stayed near multi-month lows after the US Treasury flagged more long-term bond buybacks.