Gold rebounds, rupee appreciates

Yellow metal jumps Rs500 to Rs282,900/tola; rupee gains 6 paisa, settles at 278.65/$

KARACHI:

After a decline in the previous trading session, gold prices rebounded on Monday, aligning with an uptick in international gold rates. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola increased by Rs500, reaching Rs282,900. Similarly, the price for 10-gram gold rose by Rs429 to Rs242,541. This follows a Rs200 decrease per tola recorded on Saturday, when prices settled at Rs282,400.

On the global front, gold prices also experienced an increase, with the international rate standing at $2,708 per ounce, reflecting a $5 gain during the day, according to APGJSA.

Adnan Agar, Director of Interactive Commodities, highlighted recent developments shaping market sentiment. He stated that market reports, including one from The Wall Street Journal, suggest a possible shift in trade relations under Donald Trump's administration. Initial expectations of tariffs on Canada and Mexico now appear less likely, and there is speculation about reviving trade relations with China. However, clarity is expected only after Trump's speech, scheduled for 10 PM Pakistan time, between Monday and Tuesday.

Gold prices briefly dipped earlier but rebounded, reaching $2,710 per ounce after hitting a low of $2,690, he said. The $2,720-$2,730 level is seen as a significant resistance area. Historically, this range has triggered downward corrections, as seen in the last three to four instances. If gold manages to break and close above $2,730, it could signal a sustained upward trend. However, failing to surpass this level may result in a downward trajectory, Agar said.

Internationally, gold prices were supported by a weaker US dollar, as markets awaited Donald Trump's return to the White House and his inauguration speech later in the day for hints on the impact of his policies on the economy. Spot gold added 0.3% to $2,708.29 per ounce. US gold futures fell 0.7% to $2,729.20, with trading volumes thin due to the US markets being closed for the Martin Luther King Jr Day holiday.

China's Zijin Mining Group has restarted gold production at its Buritica project in Colombia, a company source told Reuters on Monday, following a pause in operations triggered by an attack by an armed group over the weekend. Buritica is the South American nation's largest gold mine.

Meanwhile, the Pakistani rupee experienced a slight improvement against the US dollar, appreciating by 0.02% in the inter-bank market on Monday. By the close of the session, the currency settled at 278.65, marking a gain of 6 paisa against the US dollar.