Gold up Rs8,500, silver extends record rally

Boom pushes yellow metal to new peak at Rs470,862/tola; globally white metal breaches $70 an ounce

KARACHI:

Gold prices in Pakistan surged on Tuesday, tracking strength in the international bullion market, where silver extended its record rally to breach the key $70 per ounce level, while gold pared some gains after touching an all-time high amid stronger-than-expected US economic data.

In the local market, the price of gold per tola rose by Rs8,500 to Rs470,862, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the price of 10 grams of gold increased by Rs7,288 to Rs403,688.

On Monday, gold had already posted a strong advance, with the per-tola rate climbing Rs6,200 to settle at Rs462,362.

Silver prices in the domestic market remained unchanged at Rs7,205 per tola, despite sharp gains in the international market.

Globally, spot silver rose as much as 0.7% to hit a fresh record high of $70.66 per ounce before easing slightly to around $69.48. Silver prices are now up about 123% year-to-date, according to Reuters' data. Analysts see the next major resistance near the $75 level.

Gold also touched a new all-time high of $4,497.55 per ounce, marking a gain of more than 70% so far this year, before retreating modestly as robust US economic growth data for the third quarter triggered some profit-taking. Platinum climbed to a 17-year high, while palladium touched its highest level in nearly three years.

Commenting on market trends, Adnan Agar, Director at Interactive Commodities, said gold continues to register new record highs on an almost daily basis. He noted that while a short-term correction or reversal could emerge in early January, the broader outlook for precious and base metals remains firmly bullish.

"Unless there is a major negative trigger for gold, the overall setup remains positive for metals including gold, silver, platinum, copper and palladium," Agar said, adding that the sector appears set for a strong close to 2025.

Meanwhile, the Pakistani rupee posted a slight uptick against the US dollar in the inter-bank market on Tuesday. By the end of trading, the local currency closed at 280.21, edging up by Rs0.01 compared to the previous session. On Monday, the rupee had settled at 280.22.

In the international market, the US dollar stayed under pressure. The euro strengthened marginally to $1.1774, while the British pound climbed to a two-and-a-half-month high of $1.348.

Meanwhile, the dollar index, tracking the greenback against six major currencies, slipped to 98.112 on Tuesday after a 0.48% decline a day earlier. The index was headed for a monthly fall of around 1.3% and an annual drop of 9.5%, marking its sharpest yearly decline since 2017.