Market correction ends as yellow metal hits Rs301,500

KARACHI:

Gold prices in Pakistan increased on Monday, reflecting the rise in international rates. In the local market, the price of gold per tola climbed by Rs1,500, reaching Rs301,500, while 10-gram gold was sold at Rs258,487 after an increase of Rs1,286, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

This rise follows a decline of Rs500 per tola on Saturday, highlighting the volatility in gold prices. Internationally, gold also witnessed an increase, with its rate reaching $2,869 per ounce (including a $20 premium), marking a $12 gain during the day.

According to Adnan Agar, Director of Interactive Commodities, gold prices had recently seen a correction, which was expected. On Friday, the price hit a low of $2,832 per ounce before closing at $2,871.50. The market rebounded on Monday, rising to $2,882 and reaching a daily high.

Agar suggested that gold might bounce back towards $2,900, but resistance is expected at that level. If the price sustains above $2,900, further upward momentum could push it towards $3,000. However, if it remains below this threshold, there is a possibility of further correction, potentially bringing gold down to $2,880 or even $2,850.

The closing price in the coming days will be crucial in determining gold's next movement. If it closes above $2,950, a strong upward trend could develop. However, if it stays below, there is potential for further declines before another upward push.

Globally, gold prices rose on Monday after a slump to a three-week low in the previous session, driven by a weaker dollar and safe-haven buying in response to concerns over US President Donald Trump's tariff policies.

Spot gold gained 0.5% to $2,873.11 an ounce as of 1429 GMT. US gold futures rose 1.3% to $2,884.50.

The dollar index dropped by 0.8%, moving away from a more than two-week high hit in the previous session, reflecting weakness that makes dollar-priced gold less expensive for buyers holding other currencies.