Gold regains Rs3,700 per tola

Gold prices in Pakistan rebounded sharply on Tuesday, mirroring gains in the international market following a wave of bargain-hunting after Monday's sharp decline. A softer-than-expected US inflation report also supported the precious metal's recovery.

According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold rose by Rs3,700 per tola, reaching Rs344,200 in the local market. Similarly, the price of 10-gram gold climbed Rs3,173 to settle at Rs295,096.

The previous day (Monday), gold had plunged by Rs10,400 per tola, ending at Rs340,500.

Globally, gold prices rose on Tuesday on bargain-hunting after a sharp loss in the previous day, while softer-than-expected inflation data from the US also lent support, according to Reuters. Spot gold rose 0.3% to $3,243.99 an ounce as of 1120 EST (1520 GMT), after falling as low as $3,207.30 on Monday. US gold futures were up 0.7% at $3,249.50.

"We had a big correction in gold on Monday on the news that there is a deal made between the US and China," Bart Melek, Head of Commodity Strategies at TD Securities, said. "However, tariffs (on China) are still 30%, which is quite negative for the economy."

The United States and China on Monday said they would pause their tariffs for 90 days. Following talks in Geneva over the weekend, the US said it will cut tariffs on Chinese imports to 30% from 145% while China said it would cut duties on US imports to 10% from 125%.

Bullion had shattered multiple record highs in 2025 owing to concerns over economic slowdown following US President Donald Trump's sweeping tariffs, strong central bank buying, geopolitical tensions and increased flow into gold-backed exchange-traded funds.

Commenting on market dynamics, Adnan Agar, Director at Interactive Commodities, said gold touched a high of $3,265 and a low of $3,215 during the session on the Pakistan Mercantile Exchange. "The US inflation data was better than expected, which initially pushed gold prices higher. The market later corrected but stabilised around $3,244," he noted.

He added that the market is currently data-driven. "If gold breaks the $3,275–$3,270 resistance zone, we could see a move towards $3,300 and above. However, a drop below $3,220–$3,200 could pull the price down to $3,180," Agar said, adding that future movement depends on upcoming economic indicators.

Meanwhile, the Pakistani rupee posted a slight decline against the US dollar in the inter-bank market on Tuesday, depreciating by 0.04%. At the close of trading, the rupee settled at 281.67, down by 10 paisa from Monday's closing rate of 281.57.

Globally, the US dollar maintained its upward momentum, buoyed by investor optimism following a trade agreement between the United States and China.