Gold prices sees sharp rise in local, international markets

Gold prices experienced a significant rise on Thursday rebounding strongly after a slight dip the previous day.

Globally, the price of gold also saw an upward trend in the international bullion market, with the per ounce rate rising by $25, reaching $2,913.

According to the Sarafa Association, the price of per tola gold surged by Rs2,500, reaching Rs304,000, while the price of 10 grams increased by Rs2,144, bringing it to Rs260,631 in the local market.

In addition to gold, silver prices in Pakistan also experienced a rise. The per tola rate increased by Rs55 to reach Rs3,367, while the price of 10 grams went up by Rs47, standing at Rs2,886.

Gold rose on Thursday, supported by a weaker U.S. dollar and growing worries over U.S. President Donald Trump's tariff plans, which could heighten global trade tensions, while investors eyed another set of inflation data.

Spot gold added 0.3% to $2,913.38 per ounce as of 0935 GMT, moving back towards its record peak of $2,942.70 hit on Tuesday. U.S. gold futures firmed 0.4% to $2,940.90.

A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.

On Wednesday, gold prices fell more than 1% after stronger-than-expected US consumer price index for January, but rebounded later as ongoing trade war uncertainties kept the safe-haven metal's demand intact.

Trump announced plans to impose reciprocal tariffs on countries that levy duties on US imports, expected Wednesday or Thursday.

"Trump is unpredictable and, as long as uncertainty remains in the market, gold will continue to receive support," said Ajay Kedia, director at Kedia Commodities, Mumbai.

"Overall, the dollar index is currently under pressure, which has been supportive for gold."

The dollar index fell 0.2%, making greenback-priced gold less expensive for foreign buyers.

Investors are now focussed on the U.S. Producer Price Index (PPI) data due at 1330 GMT, followed by Friday's retail sales report, for further economic clues.

Meanwhile, Federal Reserve Chair Jerome Powell, at his second congressional hearing this week, reiterated that the central bank was in no rush to cut interest rates.

"Market is convinced that there is very limited room for the Fed to ease; Fed funds futures trimmed rate cut expectation to 29bps for this year, with the chance of a 25bp cut priced at 78% by September and at 94% by October," OCBC analysts said.

Wall Street's main index is closed mostly lower on Wednesday,00:0301:46

Bullion is seen as a hedge against inflation and economic uncertainties, but higher interest rates tarnish the non-yielding asset's allure.

ANZ expects gold to touch a record high of $3,000 per ounce in 2025.

Spot silver was steady at $32.23 per ounce and platinum was flat at $991.65. Palladium firmed 0.5% to $978.46.