Gold prices in Pakistan continued their upward trajectory on Friday, mirroring the surge in international markets. The price of gold per tola increased by Rs2,200, reaching an all-time high of Rs306,200 in the local market. Similarly, the price of 10-gram gold rose by Rs1,886, settling at Rs262,517, as per data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Adnan Agar, Director of Interactive Commodities, noted that while gold prices saw an increase during the day, the market experienced a slight dip towards the end of the session. He highlighted that gold has been undergoing minor corrections of $50-$60, which could indicate a potential buildup for another upward movement.
Looking ahead, Agar pointed out that with the upcoming US bank holiday on Monday (Presidents' Day), market activity may remain subdued. However, if gold closes at its current level, further corrections of $30-$40 could be expected before the next price surge. The market will closely monitor these fluctuations to determine the next movement in gold prices.
"Gold set for seventh weekly gain as trade war risks lift demand," said JS Global's Technical Outlook report.
Gold was poised for its seventh straight weekly rise, driven by fears of a global trade war in the wake of US President Donald Trump's push for reciprocal tariffs, although profit-taking sent prices lower on Friday, said Reuters.
Spot gold was down 0.3% at $2,919.69 an ounce as of 1500 GMT, but remained on track for a weekly gain of more than 2%. Bullion hit a record peak of $2,942.70 on Tuesday.
Meanwhile, the Pakistani rupee showed a marginal improvement against the US dollar, appreciating 0.02% in the inter-bank market on Friday. By the end of the trading session, the rupee stood at 279.21, gaining 5 paisa compared to its previous close of 279.26 on Thursday.
Pakistan's central government domestic debt increased by 3% month-on-month (MoM), reaching Rs49.88 trillion in December 2024, according to Topline Securities. Meanwhile, external debt remained unchanged at Rs21.76 trillion during the same period. As a result, total central government debt stood at Rs71.6 trillion, reflecting a 2% MoM increase. Experts say this will put strain on the rupee in the coming days. On the international front, the US dollar and other major currencies remained stable as traders evaluated the potential effects of Washington's proposed reciprocal tariffs, which are not set to take effect immediately.
US President Donald Trump instructed his economic team on Thursday to draft a plan for imposing reciprocal tariffs on countries that levy duties on US imports. While these tariffs are not being enforced immediately, a White House official indicated that they could be implemented within weeks as officials review bilateral trade and tariff structures.
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