Gold rebounds as global prices surge

Price rises by Rs1,000 to reach Rs276,000/tola; rupee weakens by 0.02%, closing at 278.67/$

KARACHI:

Gold prices in Pakistan rebounded on Tuesday, following an upward trend in international markets. In the local market, the price of gold per tola increased by Rs1,000 to reach Rs276,000, while the price for 10 grams rose by Rs857 to Rs236,625, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

This surge follows a Rs700 decline in the per tola price on Monday, when it settled at Rs275,000.

Globally, gold prices also gained momentum, with the APGJSA reporting an international rate of $2,642 per ounce (including a $20 premium), reflecting a $10 increase during the day. Adnan Agar, Director at Interactive Commodities, highlighted that gold touched an intraday high of $2,664 and a low of $2,632, currently trading between $2,642 and $2,647. He noted that the market is finding support at $2,600, a level from which prices are rebounding. However, the market's future direction depends heavily on US non-farm payroll data due on Friday, which is expected to significantly influence trading dynamics.

Internationally, gold prices climbed 1% on Tuesday, supported by a dip in the US dollar and China's central bank adding to its gold reserves for the second consecutive month. The market is also waiting on US economic data to gauge the Federal Reserve's policy path.

Spot gold was up 0.9% at $2,659.29 per ounce as of 1453 GMT, while US gold futures rose 1% to $2,673.

"The dollar is off its highs, which is helping gold," noted Daniel Pavilonis, Senior Market Strategist at RJO Futures.

Meanwhile, the Pakistani rupee experienced a slight depreciation against the US dollar in the inter-bank market on Tuesday, weakening by 0.02%. By the close of trading, the rupee stood at 278.67, marking a Re0.05 loss compared to Monday's rate of 278.62, according to the State Bank of Pakistan (SBP).

Globally, the US dollar lingered near a one-week low against major currencies as traders speculated that President-elect Donald Trump's tariff policies might be less stringent than initially anticipated. This speculation followed a Washington Post report suggesting softer tariff measures, which Trump later denied. Zafar Paracha, Secretary General of the Exchange Companies Association of Pakistan, remarked that the rupee has remained stable and range-bound, despite year-end remittances sent by banks and multinational companies to parent firms and investors. This stability is attributed to low demand in the open market.