Gold double jumps to all-time high
Photo: FILE
Gold prices in Pakistan soared to an all-time high on Thursday, mirroring the upward trend in international markets. The price of gold per tola surged by Rs3,100, settling at Rs291,800the highest level in history, according to data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price rally was marked by a double increase within the day. Initially, rates climbed by Rs1,600 per tola, reaching Rs290,300, before rising further to Rs291,800. This sharp jump followed Wednesday's significant gain of Rs2,300 per tola, which had pushed gold prices to Rs288,700.
International gold markets also experienced a two-step rise. Initially, global prices increased by $15, reaching $2,778 per ounce, before climbing another $14 to settle at $2,792 per ounce.
Abdullah Abdul Razzaq, a member of APGJSA, confirmed that this is the highest gold price ever recorded and warned that further increases are expected. He noted that market expectations of a decline in gold prices following Donald Trump's assumption of office have not materialised. Instead, heavy institutional selling, combined with 40% of investors holding loss-making positions, has sustained the market's bullish momentum.
Adnan Agar, Director of Interactive Commodities, highlighted that international gold prices hit a peak of $2,789 per ounce before revisiting this level on Thursday. He explained that gold remains in an upward trajectory, with $2,730 serving as a strong support level. Since this support has held firm, the market has continued to climb.
However, he cautioned that the upside potential may be limited. Gold prices are expected to test the $2,800$2,810 range before a possible correction, with a short-term pullback of $30$40 likely before the market stabilises.
Looking ahead, market movements will be influenced by next week's US inflation data (CPI report), which could impact investor sentiment. A weakening US dollar has played a key role in supporting gold prices, and as long as this trend continues, gold is expected to remain on an upward path.
Globally, spot gold rose 1% to $2,783.95 per ounce as of 1441 GMT, nearing its record high of $2,790.15 set in October. US gold futures climbed 1.4% to $2,808. Safe-haven demand, fuelled by US tariff threats, continues to drive gold prices higher, with investors closely watching inflation trends for clues on the Federal Reserve's policy path.
Alex Ebkarian, Chief Operating Officer at Allegiance Gold, noted that inflationary pressures and tariff-related uncertainty are contributing to gold's bullish trajectory. "The sell-off in equities hasn't benefited bullion yet, but it could eventually push gold towards the $3,000 mark before the end of the year," he predicted.
Meanwhile, Pakistan's economic situation remains under strain. The State Bank of Pakistan (SBP) reported a $76 million decline in foreign exchange reserves, bringing the total to $11.37 billion as of January 24, 2025. This drop was attributed to external debt repayments, underscoring continued pressure on the country's financial stability. Total liquid foreign exchange reserves now stand at $16.05 billion.
According to the latest data, net foreign reserves held by commercial banks remain at $4.68 billion. Additionally, the Pakistani rupee saw a slight depreciation against the US dollar, weakening by 0.02% in the inter-bank market on Thursday. The currency closed at 278.97 per dollar, down 4 paisa.