Gold prices rose slightly on Monday as investors expected the Federal Reserve to suspend interest rate rises at its policy meeting this week. The US Federal Reserve’s rate projection has everyone’s attention.
Spot gold was up 0.2% at $1,928.19 per ounce as of 0256 GMT, while US gold futures were up 0.2% at $1,949.30.
On Monday, the price of a single tola of 24-karat gold in Pakistan was Rs 218,000. The price of ten grams of 24k gold was Rs186,900.
Similarly, 10 grams of 22k gold were exchanged for Rs171,324, and a single tola of 22k gold was sold for Rs199,832.
However, don’t expect gold to steal the show when interest rates rise. Gold, which doesn’t provide any yield, tends to lose favor among investors in such scenarios.
In other news, COMEX gold speculators reduced their net long position by 16,544 contracts in the week ending September 12. This indicates a cautious stance among investors.
While there’s optimism about a soft landing and the prospect of higher rates in the future, TD Securities suggests that gold bulls may need to be patient for another significant catalyst.