Gold sees correction of Rs2,000 after record high
After reaching a record high in previous sessions, the price of gold per tola in Pakistan underwent a minor correction, dropping by Rs2,000 due to a decline in international rates. On Friday, gold per tola was priced at Rs307,000 following the decrease, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Just a day earlier, on Thursday, the price had risen by Rs1,000, hitting an all-time high of Rs309,000 in Pakistan.
At the global level, gold prices also saw a dip on Friday. According to APGJSA, the global price stood at $2,930 per ounce, reflecting a $23 drop for the day.
"The recent correction in gold prices is relatively minor," said Adnan Agar, Director of Interactive Commodities. He added that the market is due for a deeper correction. Gold initially opened at $2,916 and reached a high of $2,950 before settling at $2,930. Agar suggested that if a proper correction takes place, gold could fall to the $2,800 level before stabilising. If the price reaches $2,780-$2,800, the market would likely adjust, potentially creating a foundation for a future upward move.
He noted that gold has shown downward momentum recently, especially around the $2,940-$2,950 range, where the market has repeatedly pulled back, indicating a resistance level. If this pattern continues, selling pressure may increase. Agar further explained that the coming week will be critical in determining the market's direction. Without a significant correction, gold prices may regain strength and trend upward again.
Geopolitical tensions, particularly between Russia and Ukraine, are influencing market sentiment, he said. Traders are closely monitoring these global events for potential impacts on gold prices.
APSGJA President Mohammad Qasim Shikarpuri highlighted increasing volatility in gold prices, linking it to ongoing policy changes by US President Donald Trump. He mentioned that the imposition of tariffs on Canada, Mexico, and China has further fuelled market instability. Countries are now increasingly preferring to trade in gold instead of US dollars, signalling a shift away from the dollar's dominance in international trade.
Meanwhile, the Pakistani rupee depreciated slightly against the US dollar, weakening by 0.04% in the inter-bank market on Friday. By session's close, the rupee stood at 279.57, down by 11 paisa against the US dollar. The US dollar is on track for its third consecutive weekly decline as traders assess Trump's second-term rhetoric on tariffs.