Gold prices in Pakistan rose on Monday, tracking gains in the international market, where spot gold hovered near a seven-week high, supported by a softer dollar and expectations of US interest rate cuts ahead of key economic data.

In the domestic market, gold per tola surged to Rs454,862, gaining Rs2,600 during the day. Similarly, 10-gram gold was sold at Rs389,970, up Rs2,229, according to the All-Pakistan Gems and Jewellers Sarafa Association. On Saturday, the gold price per tola had closed at Rs452,262 following a decline of Rs2,000. Meanwhile, silver touched a historic high, rising Rs68 to reach Rs6,532 per tola.

Commenting on market trends, Adnan Agar, Director at Interactive Commodities, said that the gold market was not showing significant movement on Monday, trading between $4,300 and $4,350, with the rate later standing at $4,322.

"Key US economic data is scheduled to be released this week, including inflation and employment figures, as well as the Bank of Japan's monetary policy decision. These events are likely to influence gold and overall financial markets," he mentioned.

Agar added that gold was about $60-70 below its all-time high, while silver had already touched a record high. "Barring any unfavourable news, the overall outlook for gold remains positive," he said.

Internationally, spot gold rose 0.4% to $4,321.25 an ounce by 10:21 am ET, after earlier gains of over 1%. US gold futures increased 0.6% to $4,352.90 an ounce, Reuters reported.

The rise in local gold and silver prices reflects both global market trends and investor anticipation of upcoming economic indicators, suggesting continued volatility and potential upside in precious metals in the near term.

The dollar languished near a two-month low hit on Friday, making greenback-priced bullion more attractive for overseas buyers. US non-farm payrolls report and retail data will be released on Tuesday and scrutinised by traders for further cues on the Fed's policy path.

"Traders right now are getting ahead of the Fed, expecting the data to come out a little better (than expected) and the Fed to be more inclined to continue cutting rates," said RJO Futures Senior Market Strategist Bob Haberkorn.

Gold, a non-yielding asset, tends to thrive in a low interest rate environment. Last week, the Fed delivered its third and final quarter-percentage-point rate cut of the year, while signalling a pause on further easing until more data emerges. Markets are pricing in two cuts next year, with a 73% chance of a move in January 2026, according to the CME FedWatch Tool.

Meanwhile, the Pakistani rupee posted a slight gain against the US dollar in the inter-bank market. It closed at 280.31, marking an increase of Rs0.01 versus the greenback.

Over the past week, the rupee strengthened further, appreciating by Rs0.10, or 0.04%, against the dollar. The local currency ended the week at 282.32, up from 282.42 recorded in the previous week, according to the State Bank of Pakistan.