WASHINGTON: Gold prices took a breather on Friday after a record-breaking week, as investors digested the US Federal Reserve’s rate cut that fell short of their hopes for more aggressive easing.
The pause in momentum has left global bullion hovering below its peak, while Pakistan’s gold market also steadied following weeks of sharp swings.
Global market pauses below record highs
Spot gold was almost unchanged at $3,646.23 per ounce as of 0311 GMT, after touching an all-time high of $3,707.40 earlier this week. US gold futures for December delivery were also flat at $3,678.90.
Market watchers had expected the Fed’s 25-basis-point rate cut to ignite another rally, but its cautious tone on future policy moves has cooled sentiment.
“Sentiment is still bullish but has definitely cooled off a bit. Basically, the Fed didn’t really deliver with the dovish guidance needed for gold to push higher,” said Kyle Rodda, an analyst at Capital.com.
Rodda noted that the central bank’s projection of only one rate cut in 2026 surprised markets, pushing up bond yields and strengthening the dollar. Both factors tend to weigh on gold.
“We need something now to reverse that dynamic for gold to make another solid run above $3,700. Some weak US data would probably do the trick,” he added.
The Fed resumed rate cuts on Wednesday and hinted at more to come, but warned about stubborn inflation, leaving investors uncertain about how fast rates might fall. Chair Jerome Powell described the move as a “risk-management cut” to support a softening labour market, and said future policy would depend on upcoming data.
Traders are now betting on a 92 percent chance of another 25-basis-point cut at the Fed’s October meeting, according to the CME Group’s FedWatch tool. Lower interest rates usually boost gold by reducing the appeal of interest-bearing assets.
In other precious metals, spot silver rose 0.7 percent to $42.11 per ounce, platinum gained 0.2 percent to $1,386.10, and palladium climbed 0.6 percent to $1,157.49, although it has lost 3.3 percent so far this week.
Gold price in Pakistan
Back home, gold prices in Pakistan remained unchanged on Thursday, offering a rare pause to buyers and investors who have watched a dramatic rally unfold through September.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold stayed at Rs388,600 per tola, while the 10-gramme rate stood firm at Rs333,161. Silver edged up by Rs31 to reach Rs4,418 per tola.
The past few weeks have been a whirlwind for the local bullion market. Starting the month at Rs370,700 per tola, gold rocketed to Rs391,000 by September 16, setting new records almost daily before cooling slightly. The price then slipped back to Rs388,600 on September 17, where it has held since.
This surge mirrored moves in the global market, where expectations of US rate cuts fuelled buying interest. Each spike drew brisk activity from investors, while sudden dips rattled cautious buyers, creating a tense atmosphere in jewellery markets nationwide.
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