Bullion rebounds to Rs349,200/tola

Gold prices in Pakistan surged on Tuesday, reflecting gains in the international market, as investor sentiment remained upbeat amid strong momentum.

According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold rose by Rs2,100 per tola, reaching Rs349,200 in the local market. The price of 10 grams of gold also saw a notable increase of Rs1,800, closing at Rs299,382.

On the global front, the yellow metal gained $21 during the day, with the international rate standing at $3,310 per ounce, inclusive of a $20 premium, APGJSA stated.

The uptick comes a day after domestic gold prices dropped by Rs1,600 per tola to settle at Rs347,100. Commenting on the market dynamics, Adnan Agar, Director at Interactive Commodities, said gold is currently trading within a tight range, fluctuating between $3,270 and $3,380. "As of now, the metal is moving within this defined $110 band. A break above $3,380 could trigger a rally towards the $3,500 mark, while a drop below $3,270 may push prices down to $3,250 or $3,240," he noted.

He added that the market remains range-bound, with no significant global developments - including those tied to the US-China trade situation - driving a breakout. However, strong momentum in the US session suggests potential for upward movement if key resistance levels are breached.

"Gold touched a low of $3,275 today, climbed to a high of $3,350, and is currently hovering around $3,344," Agar said, emphasising that the metal has gained nearly $70 from its recent dip. "If the resistance at $3,380 breaks, we could see continued upward momentum."

Meanwhile, the Pakistani rupee recorded a slight uptick against the US dollar, gaining 0.02% in the inter-bank market. By the close of trading, the local unit settled at 281.02 against the greenback, appreciating five paisas from Monday's closing rate of 281.07.