Gold prices fell slightly on Thursday as news of an Israel-Gaza ceasefire reduced demand for safe-haven assets. The peace development between Israel and Hamas shifted investor focus to the upcoming Federal Reserve outlook, with markets awaiting Chair Jerome Powell’s remarks on possible rate cuts.
According to Reuters, spot gold prices traded near USD 4,037.95 per ounce, after briefly touching a record USD 4,059 earlier this week. TradingEconomics reported similar levels at USD 4,040.12, while December futures settled near USD 4,056.80. Analysts said the overall gold rate today remains elevated as investors weigh the ongoing U.S. government shutdown and global fiscal risks.
Israel-Gaza Ceasefire Slows Safe-Haven Demand
Al Jazeera reported that Israel and Hamas had reached a phase-one truce that reduced geopolitical tensions in the area. The announcement reduced the demand of safe-haven assets like gold and silver and both commodities shows mild corrections.
Market experts cited by FXStreet said the Gaza ceasefire temporarily reduced volatility, but the situation in Palestine remains fragile. Any renewed instability in Gaza could quickly restore demand for gold prices and push the silver rate today higher as investors seek safer stores of value.
Fed Outlook and U.S. Shutdown Support Gold Prices
As per Reuters and FXStreet, traders are increasingly betting on U.S. interest rate cuts later in 2025. The Federal Reserve expectations are one of the leading drivers of gold prices, and the markets are looking forward to a more explicit message of Jerome Powell in his next speech.
Meanwhile, the Wall Street Journal noted that the U.S. government shutdown, which began on October 1, has disrupted major economic reports, creating uncertainty that indirectly supports gold. Analysts say that any dovish tone from the Fed could drive the gold rate today back toward recent highs.
Gold Prices Pakistan and Silver Rate Today
Locally, gold prices Pakistan continued to follow global trends. As per the All Pakistan Sarafa Jewelers Association, the 24K gold rate today stood near PKR 433,600 per tola, while 22K gold was quoted around PKR 397,569 per tola.
Retail demand and higher prices did not affect the demand, whereas the silver rate today also did not drop as it follows the movement of the global commodities. According to the local traders, the gold rate in the market is a mixture of international prices and also the fluctuation of the rupee against the dollar.
According to FXStreet analysts, a persistent upward trend above USD 4,060 would make gold reach new highs, and the support at USD 3,975 may result in short-term corrections.
The market has been ambivalent as investors strike a balance between the effect of the Israel-Gaza ceasefire, Federal Reserve policy, and the current U.S. fiscal uncertainty. The general perspective of gold and gold prices Pakistan will rely on the development of these factors in the next few days.
