Gold prices in Pakistan edged higher on Wednesday, moving in opposite direction of the international market, where bullion slipped under pressure from a stronger US dollar and Treasury yields.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola increased by Rs1,000 to Rs361,700. Similarly, the rate of 10 grams of gold rose by Rs857 to Rs310,099. A day earlier, gold had surged by Rs900 per tola to close at Rs360,700.
In contrast, international spot gold prices fell as firm US Treasury yields and a stronger dollar weighed on the precious metal. However, losses were cushioned by safe-haven demand amid lingering concerns about the US Federal Reserve's independence following reports of President Donald Trump's attempts to dismiss a Fed governor.
Interactive Commodities Director Adnan Agar noted that the yellow metal remains in a trading range but is showing upward momentum. "The situation with gold is that its prices are on the upside. The day's low was $3,373 and the high was $3,393. The market was heading towards the $3,400 level," he said.
Agar added that gold faces resistance around $3,400, with the next possible targets being $3,440 and $3,450 if that threshold is breached. "The market has been trading for approximately the last three months between $3,300 and $3,450. So let's see what happens in the coming days," he remarked.
Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market, extending its winning streak to 14 consecutive sessions.
At the day's close, the local currency settled at 281.83 per dollar, up by three paisa, or 0.01%, compared to Tuesday's close at 281.86. According to data shared by Ismail Iqbal Securities, the rupee has so far depreciated by 1.16% in the current calendar year, but appreciated by 0.69% in the ongoing fiscal year.
The gradual strengthening of the rupee comes amid renewed confidence in Pakistan's external account outlook, supported by improving credit ratings, easing spreads, and expectations of fresh inflows.
Finance Minister Muhammad Aurangzeb, speaking on Wednesday, announced that Pakistan was preparing to re-enter international capital markets, starting with the issuance of Panda bonds. He expressed optimism that the debut transaction could materialise before the year's end, while also hinting at exploring other global markets through Global Medium-Term Note (GMTN) programmes.
Market participants believe that while the rupee's appreciation trend is encouraging, its sustainability will depend on Pakistan's ability to attract external financing, stabilise reserves, and manage upcoming debt repayments.
On the global front, the US dollar remained subdued as investor sentiment was rattled by concerns over the Federal Reserve's independence. Reports that President Trump had sought to dismiss a Fed governor reignited worries about political interference, limiting the greenback's strength despite firm Treasury yields.
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