Gold rebounds, rupee stable

Gold prices in Pakistan rebounded by Rs2,100 to Rs277,300 per tola (11.66 grams) on Friday, in line with international market trends. The All Pakistan Sarafa Gems and Jewellers Association reported the increase after a Rs700 dip on Thursday, which brought the price down to Rs275,200 per tola.

Adnan Agar, Director of Interactive Commodities, stated that such fluctuations in Pakistan's gold market are expected, with $25 price swings being common in global gold trading. He noted that the overall market trend remains bullish, with investors capitalising on price dips for buying opportunities.

In the international market, gold prices rose on Friday, supported by a weaker US dollar and geopolitical concerns. Spot gold climbed 0.7% to $2,659.49 per ounce but recorded a weekly decline of about 2% after a sharp sell-off earlier in the week. US gold futures also increased by 0.8% to $2,659.20 per ounce.

Agar identified $2,675 as a key resistance level, cautioning that a sharp rise beyond this threshold could trigger a market correction. He added that gold's safe-haven appeal continues to drive an overall bullish sentiment, despite recent price volatility.

Meanwhile, the Pakistani rupee maintained its range-bound cycle against the US dollar. In the interbank market, it depreciated marginally by Rs0.01, closing at 278.04 on Friday. In the open market, the Exchange Companies Association of Pakistan (ECAP) reported a daily decline of Rs0.12, with the currency settling at 277.31 per dollar.

Tahir Abbas, Head of Research at Arif Habib Limited, attributed the rupee's relative stability to surplus market liquidity, bolstered by steady inflows. October's current account surplus of $349 million contributed to a cumulative surplus of $218 million for the first four months of FY25. During this period, exports reached $13.1 billion, while imports stood at $22.4 billion.