Gold soars as dollar weakens after US polls

Gold in Pakistan rose by Rs13,900 per tola on Wednesday to Rs426,036, while the 10-gram rate advanced Rs11,917 to Rs365,257, The Express Tribune reported. International bullion gained $139 to $4,035 an ounce, with spot gold up 2.9% to $4,040.15 and US December futures 2.8% higher at $4,049.

The report linked the international rally to a weaker US dollar after Democrats won both chambers of Congress in the midterm elections. Investors are also watching the US nonfarm payrolls release for indications on the Federal Reserve’s interest-rate outlook; Interactive Commodities director Adnan Agar said uncertainty over the Iran conflict could also affect gold. He identified $4,150 an ounce as a level needed for greater stability, while a fall below $3,970 could put prices under pressure.