Gold continues upward trend, reaches Rs277,400

Gold prices rose for the second consecutive day on Tuesday, which came in line with the international market trend.

In the local market, the price of gold per tola increased Rs1,000 to Rs277,400. Similarly, the price of 10-gram gold went up Rs858 and settled at Rs237,826, according to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

On Monday, gold prices had surged Rs2,000 per tola, reaching Rs276,400. Globally, the bullion market also saw an upward trend as the APSGJA reported that the price stood at $2,662 per ounce, reflecting a $10 rise during the day.

Interactive Commodities Director Adnan Agar attributed the international price surge to geopolitical tensions, particularly following the Syrian political upheaval, which resulted in the ouster of Bashar al-Assad's government.

The uncertainty in the Middle East has fueled investor concerns, pushing gold prices higher. Additionally, renewed gold purchases by China's central bank after a six-month hiatus further boosted market sentiment.

Meanwhile, the Pakistani rupee experienced a slight depreciation of 0.03% against the US dollar in the inter-bank market. It closed at 278.05, marking a decline of Rs0.07 compared to the previous day's rate of 277.98, as per data of the State Bank of Pakistan (SBP).

The rupee depreciated in the open market as well, where it traded at 277.21 compared to 277.15 on Monday. This represents a decline of Rs0.06, or 0.02%.

Exchange Companies Association of Pakistan General Secretary Zafar Paracha described fluctuations in the rupee value as range bound, attributing it to market dynamics of demand and supply.