Gold maintains momentum, jumps Rs1,900/tola

Gold prices in Pakistan surged on Tuesday, reflecting the global trend of rising rates. In the local market, the per tola price of gold jumped by Rs1,900, reaching Rs294,300, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This followed Monday's rise of Rs200 per tola, which had already set a then-all-time high of Rs292,400.

Globally, gold prices also experienced an upward trend. According to APGJSA, the international price of gold reached $2,815 per ounce (including a $20 premium) after gaining $16 during the day.

"The bullish momentum remains strong," said Adnan Agar, Director of Interactive Commodities. He noted that the international market hit a new all-time high of $2,840 per ounce earlier in the day before settling around $2,828, with a daily low of $2,807.

Agar expects a possible correction when prices approach the $2,850-$2,860 range, though for now, the market maintains strong momentum. Over the past few hours, gold prices have increased by nearly $30, with the market hovering around $2,810 earlier in the evening. The key focus is on Friday's employment data, which could determine the market's next movement.

The dollar fell 0.5%, making gold less expensive for other currency holders. Meanwhile, the Pakistani rupee saw a slight appreciation against the US dollar, rising by 0.03% in the interbank market on Tuesday. By the end of the trading session, the rupee closed at 278.96, marking an increase of 8 paisa compared to the previous day's closing rate of 279.04, according to the State Bank of Pakistan (SBP).

Additionally, the government of Pakistan raised Rs544.63 billion through the auction of Treasury Bills (T-Bills) and Government of Pakistan Ijarah Sukuk (GIS). The SBP secured Rs452 billion in its latest T-Bill auction, surpassing its target of Rs450 billion, with total bids amounting to Rs918 billion. The cut-off yields increased across all tenures, with the 3-month T-Bill yield rising by 21 basis points to 11.7998%, the 6-month yield up by 10 basis points to 11.5048%, and the 12-month yield climbing by 20 basis points to 11.5898%.

The Pakistan Stock Exchange raised Rs92.63 billion for the Ministry of Finance through the 18th auction of GOP Ijarah Sukuk held on February 4, 2025. The auction received total bids worth Rs256.62 billion. The fixed rental rate for 3-year and 5-year Sukuks remained unchanged at 11.4990% and 11.9900%, respectively, while no bids were received for the 10-year GIS. The variable rental rate for the 3-year and 5-year Sukuks was 11.1001% (-0.79% from the reference rate) and 11.2301% (-0.66% from the reference rate), respectively.