Gold slips as global rally stalls

Down Rs600 per tola; rupee inches up to 277.52/$

KARACHI:

Gold prices in Pakistan edged lower on Tuesday, tracking a pause in the international rally that had pushed bullion to a more than three-month high earlier in the session.

According to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association, the price of gold per tola closed at Rs486,536 after a decline of Rs600. Ten-gram gold was quoted at Rs417,126, down Rs514. A day earlier, the metal had surged Rs4,200 per tola. Silver also retreated in the local market on Tuesday, falling Rs100 to Rs7,279 per tola.

In the international market, spot gold was virtually unchanged at $4,652.26 per ounce by 1547 GMT, after touching its highest level since May 14, as per Reuters. US gold futures rose 0.2% to $4,709.40. The advance lost momentum near a key psychological resistance level as traders awaited the release of the US Federal Reserve's preferred inflation gauge later this week.

Interactive Commodities Director Adnan Agar said the market saw a high near $4,700 and a low around $4,600 before settling near $4,650. "A lot of important data is coming out this week, which will cause price fluctuations," he noted. "It could be very volatile, and while there are chances of a downward move, it's just a short-term correction. After that, the market will head back upwards."

Key releases include the US personal consumption expenditure (PCE) report on Wednesday, followed by further data on Thursday and Friday. Other factors in focus include Iran's vow to retaliate after the United States widened sanctions and a report that China's net gold imports via Hong Kong rose 11% month-on-month.

The recent strength in gold has been supported by expectations around the US monetary policy, geopolitical tensions and steady physical demand from Asia. However, the proximity to psychological resistance and the cluster of economic data this week have prompted some profit-taking and caution among traders.

Moreover, uncertainty about the renewal of Gold Fields' mining leases in Ghana was weighing on the company's valuation, its CEO said on Tuesday, as the South African miner posted an 81% jump in half-year profit, driven by higher gold prices and output.

Gold Fields' Tarkwa mine leases in Ghana will expire in April 2027 and the company said it was yet to receive formal responses to its renewal application submitted in November 2025.

Meanwhile, the Pakistani rupee closed at 277.52 against the US dollar in the inter-bank market, gaining Rs0.03 from Monday's close at 277.55. Globally, the dollar struggled to hold gains against major currencies as investors assessed Washington's expanded Iran-related sanctions and efforts to ease pressure on longer-dated Treasury yields.