Gold market shows signs of softening

Prices drop Rs1,800 per tola as global market dynamics shift while rupee loses 13 paisas settling at Rs280.60/$

KARACHI:

Gold prices in Pakistan fell on Monday following a continued upward trend over the past several sessions. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola dropped by Rs1,800, settling at Rs338,800 in the local market. Similarly, the price of 10 grams of gold decreased by Rs1,543, reaching Rs290,466.

This decline comes after gold touched an all-time high of Rs340,600 per tola on Saturday.

Internationally, gold prices also softened. The global rate stood at $3,218 per ounce on Monday (including a $20 premium), marking a day-on-day drop of $18, as per APGJSA. "Gold appears to be entering a corrective phase after a sharp rally," said noted Adnan Agar, Director at Interactive Commodities, commenting on the market trend. "Prices surged nearly 10% within four to five days without any significant pullback. Today, gold hit a high of $3,245 - the same level it touched on Friday - and recorded a low of $3,190 before stabilising around $3,202," he said.

Agar pointed out that if gold breaches the $3,190 level, it may test further support zones around $3,150 and potentially $3,100, with a lower range between $3,050 and $3,080 also in play.

He added that global market activity may slow down later this week due to the Good Friday holiday and Easter weekend, as many international markets will remain closed. "With Europe shut on Monday and the US observing a partial holiday, we expect subdued movement until Tuesday, when trading volumes may begin to normalise," he said.

Meanwhile, the Pakistani rupee registered a slight depreciation against the US dollar on Monday, slipping by 0.05% in the inter-bank market. By the end of the trading session, the local currency settled at Rs280.60, down 13 paisas from the previous close.

In the prior week, the rupee largely held steady against the greenback. It had initially weakened by 31 paisas over the first three sessions, but recovered those losses in the final two sessions, closing the week unchanged at Rs280.47, as per data released by the State Bank of Pakistan (SBP).

On the global front, the US dollar edged lower on Monday. After briefly rebounding from a three-year low, its momentum faded amid growing investor unease, triggered by a string of tariff-related statements from US President Donald Trump, which continued to pressure sentiment surrounding the world's reserve currency.