Gold rises despite weekly global losses

Gold prices in Pakistan rose on Friday, though international bullion markets reversed earlier gains amid pressure from a stronger dollar and elevated US Treasury yields. The price of gold increased by Rs2,000 per tola to Rs440,636, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10-gram gold rose Rs1,715 to Rs377,774. On Thursday, gold had declined by Rs3,000 per tola to Rs438,636. In the international market, spot gold fell 0.8% to $4,145.68 per ounce by 11:38 am EDT (1538 GMT), after gaining earlier in the session, as per Reuters. The precious metal was down around 3.3% for the week, putting it on course for a weekly decline. US gold futures were down 0.7% at $4,173.50 per ounce. The international market remained under pressure as the US dollar, despite edging lower on Friday, remained on track for a weekly gain. Higher Treasury yields also weighed on gold, which does not generate any yield and therefore tends to face pressure when yields rise. Yields on the benchmark 10-year and 30-year US Treasury bonds reached their highest levels since 2002 on Thursday, adding to the pressure on precious metals. Market sentiment was also influenced by fresh US labour-market data showing that job growth slowed sharply in September. The weaker employment data prompted traders to adjust expectations for the Federal Reserve's rate path, with markets trimming bets on further rate hikes. Lower expectations for rate increases can generally support bullion by reducing the opportunity cost of holding non-yielding assets. However, the impact was offset by the dollar and elevated bond yields in Friday's trading. The decline in international gold prices came despite the softer US jobs data, with investors continuing to assess the outlook for rates and the broader US economy. Other precious metals also remained under pressure internationally, with gold, silver and other metals heading for weekly losses. Meanwhile, local silver prices increased by Rs50 per tola to Rs6,578. The latest movement comes after considerable volatility in domestic bullion prices in recent sessions, with gold alternating between gains and losses as international prices and currency-market developments influenced local rates. Meanwhile, the Pakistani rupee closed at 277.07 against the US dollar, gaining Rs0.03 from Thursday's close at 277.10.