Gold prices rise in Pakistan amidst surge in global market
ISLAMABAD: (Web Desk) The per tola price of 24-karat gold was increased by Rs2,400 and was selling at Rs 243,000, according to All Sindh Sarafa Jewellers Association. On last trading day, the per tola rate of the yellow metal was Rs 240,600.

 Likewise, the price of 10-gram 24-karat gold advanced by Rs2,057 to Rs208,333 from Rs206,276. The price of 10-gram 22-karat gold went up to Rs190,972 from Rs189,086.

Meanwhile, the rates of per tola and 10-gram silver remained unchanged at Rs2,800 and Rs2400.54 respectively.

In April, gold prices in the local market had reached an all-time high of Rs252,200 per tola.

The fluctuations in gold prices are largely driven by changes in the international market, reflecting the global demand and supply dynamics for the precious metal.

In the international market, gold price attracts some follow-through buying for the second straight day and climbs to a two-week top, around the $2,375 area during the European session, according to FX Street.

Moreover, the near-term bias remains tilted in favor of bulls in the wake of bets that major central banks will lower borrowing costs to bolster economic activity.

In fact, the Bank of Canada (BoC) on Wednesday lowered its benchmark rate for the first time in four years, from a more than two-decade high and signaled concern about slowing economic growth. Furthermore, the European Central Bank (ECB) is also expected to cut interest rates for the first time since March 2016 at the end of its June policy meeting later today.

Meanwhile, the markets are now pricing in a greater chance for an imminent rate cut by the Federal Reserve (Fed) amid signs of a slowdown in the US economy. The expectations keep the US Treasury bond yields depressed near the lowest level in over two months and fail to assist the US Dollar (USD) to build on its modest recovery gains registered over the past two days.

This, along with persistent geopolitical tensions stemming from ongoing conflicts in the Middle East, continues to act as a tailwind for the safe-haven Gold price. Despite a combination of supporting factors, the upside for the XAU/USD seems limited as traders keenly await the release of the US Nonfarm Payrolls (NFP) report on Friday.