Gold prices rise Rs3,900/tola despite global dip

According to The Express Tribune, gold prices in Pakistan rose on Friday, with the tola rate climbing Rs3,900 to Rs469,136 even as bullion slid abroad. The All-Pakistan Gems and Jewellers Sarafa Association put the 10-gram price up Rs3,344 at Rs402,208, following a Rs11,200 surge on Thursday that took the tola rate to Rs465,236.

Reuters reported that, by 10:50 am EDT on Friday, spot gold had dropped 1.1% to $4,422.91 an ounce, putting it on course for a weekly decline. Earlier, the metal had fallen more than 2% to an intra-day low of $4,364.99 after stronger-than-expected US jobs data boosted expectations of a Federal Reserve rate rise, possibly as early as this month.

Higher rates usually pressure bullion, since the metal pays no yield and looks less appealing next to interest-earning instruments. Even so, Interactive Commodities Director Adnan Agar pointed to large institutions buying, citing a Bloomberg report that Fidelity International, Pictet Asset Management and Robeco had added to their gold holdings after the decline. Agar also said Amundi, described as Europe's largest asset manager, was buying on expectations that prices may reach $5,000 an ounce by year-end.