Gold posts biggest single-day gain in months

Prices jump around Rs16,000 as US-China trade war escalates; forex reserves rise $23m

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KARACHI:

Gold prices in Pakistan recorded their highest single-day increase in recent months, jumping around Rs16,000 on Thursday, mirroring a sharp rally in international markets.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold first rose Rs7,800 per tola to Rs328,800. However, later the market recorded another jump of Rs8,000, taking the total price to Rs336,800, Muhammad Qasim Shikarpuri, President of APSGJA, told The Express Tribune. Globally, the bullion also continued its upward momentum. According to APSGJA, the international price hit $3,118 per ounce on Thursday, up $78 including a premium of $20.

"This Rs7,800 jump hasn't been seen since before Ramazan," Shikarpuri said. The surge in gold prices follows rising tensions between the United States and China as the trade war intensifies. China imposed an 84% tariff, prompting a sharp retaliation from the US, which raised its tariff rate on Chinese goods to 145%. "Trade war is escalating and it's pushing gold higher. It's likely to go up even further," Shikarpuri said. He added that the international market is experiencing unusual volatility, noting, "I've never seen a $200 correction in gold in my lifetime. Recently, gold corrections have ranged between $20 and $40."

The market is witnessing rapid swings, with gold prices making large upward corrections in response to global uncertainties. While gold continues to climb, silver, which is more widely used in industrial applications, has remained relatively stable. "Despite its industrial demand, silver has not made much movement. Investors are clearly viewing gold as the ultimate safe haven right now," Shikarpuri noted.

Meanwhile, the State Bank of Pakistan's (SBP) foreign exchange reserves increased $23 million and reached $10.7 billion during the week ended April 4, 2025.

According to data released by the central bank, the country's total liquid foreign reserves stood at $15.7 billion. This includes $5.1 billion in net foreign reserves held by banks.

Moreover, the Pakistani rupee posted a modest gain of 0.08% against the US dollar in the inter-bank market. The currency closed at 280.56, up Rs0.22 from Wednesday's close at 280.78.