Gold surges by Rs2,000 amid ME instability; rupee stable

Gold prices rose on Monday, reflecting the uptick in the international market following the Syrian political upheaval and China's buying. In the local market, the price of gold climbed up Rs2,000 to Rs276,400 per tola.

Similarly, the price for 10-gram gold increased by Rs1,714 to Rs236,968, according to figures released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

Globally, as APSGJA reported, the bullion recorded an increase of $20 to $2,652 per ounce including a premium of $20.

Interactive Commodities Director Adnan Agar stated that gold prices in the international market rose to $2,668 from $2,627, a significant jump of nearly $40. It was attributed to the increased demand for safe-haven assets.

He explained that a key factor driving the demand was the Syrian political situation, which led to the toppling of Bashar al-Assad's government. The market anticipates further instability in the Middle East, heightening concerns among investors.

Agar added that investors were closely monitoring the situation in Syria. If stability returns, gold prices are likely to stabilise, however, if tensions escalate, prices may continue to rise. Internationally, gold prices hit two-week highs on Monday on renewed buying by China's central bank following a six-month hiatus.

Meanwhile, the Pakistani rupee remained mostly steady against the US dollar, rising by 0.01% in the inter-bank market. By the end of the day, it stood at Rs277.98, up Rs0.03.

Exchange Companies Association of Pakistan General Secretary Zafar Paracha termed the exchange rate fluctuations range bound, noting that small changes were primarily driven by market demand and supply. With improving remittances and other positive indicators, he believes the rupee should now appreciate to 240 per dollar. However, the government continues to prioritise the concerns of exporters, who have failed to achieve a significant improvement in exports for decades.