Gold prices recede further in local and international markets
The downward trend in gold prices continued on Friday in both international and domestic markets, driven by technical corrections and profit-taking by investors.
In the international bullion market, the price of gold fell by another $13 per ounce, bringing it down to $3,263. Analysts attribute the decline to ongoing market corrections and short-term profit booking by traders after recent highs.
Similarly, local gold prices in Pakistan also saw a notable decrease. The price of 24-karat gold fell by Rs1,300 per tola, settling at Rs344,500. The price for 10 grams of 24-karat gold dropped by Rs1,114, bringing it down to Rs295,353.
In contrast, silver prices remained stable. The per tola rate for silver stood unchanged at Rs3,427, while the price for 10 grams of silver remained steady at Rs2,938.
Market watchers suggest that gold prices may continue to show volatility in the short term due to global economic uncertainty and changing investor sentiment.
Significant price swing
Despite the recent decline, gold has witnessed a dramatic six-month rally characterized by sharp price swings and mounting geopolitical uncertainty, ultimately reaching record highs.
According to Adnan Agar, Director of Interactive Commodities, gold opened around $2,750 in November, briefly dropped to $2,500, and then surged to an all-time high of approximately $3,500, a long-anticipated milestone.
In Pakistan, bullion prices followed a similar trajectory, climbing from Rs295,000 to Rs350,000 per tola before easing slightly to around Rs346,000. The local gold market remains heavily influenced by international price movements.
This nearly $1,000 fluctuation underscores both investor anxiety and strategic buying in response to global instability. A major catalyst has been gold's reputation as a safe-haven asset, drawing increased demand during times of crisis.
Rising tensions across multiple regions, including the Russia-Ukraine war, the Israel-Hamas conflict, and renewed hostilities involving the US and Iran, have pushed risk-averse investors toward gold. Notably, between January and April 2024, the metal posted especially strong gains, rising by an estimated $600 to $700.
Political uncertainty in the United States, spurred by Donald Trump's presidential resurgence and aggressive tariff rhetoric, further fueled market unease and bolstered gold's appeal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
11 minutes ago
- Business Recorder
Dollar extends losses
NEW YORK: The dollar fell for a second straight session on Wednesday, a day after a US inflation reading increased expectations of a Federal Reserve rate cut next month, and renewed pressure from President Donald Trump for lower rates added to the sell-off. The dollar index, measuring the currency against a basket of peers, fell 0.2% to 97.81, its lowest since July 28, extending its 0.5% drop on Tuesday. US consumer prices increased marginally in July, data showed on Tuesday, in line with forecasts and as the pass-through from Trump's sweeping tariffs to goods prices has so far been limited. Investors priced in a 98% chance the central bank would ease rates next month, according to LSEG data. On Wednesday, Treasury Secretary Scott Bessent called for a 'series of rate cuts,' and said the Fed could kick off the policy rate easing with a 50 basis point cut. The day before, US President Donald Trump, who has repeatedly criticised Fed Chair Jerome Powell for not easing rates sooner, had added to the pressure on the Fed. White House spokeswoman Karoline Leavitt said that the president was considering a lawsuit against Powell in relation to his management of renovations at the central bank's Washington headquarters. 'I think there is quite significant pressure on the Fed from the political side of Washington to get moving on interest rates,' Shaun Osborne, chief currency strategist at Scotiabank, said. Michael Pfister, FX analyst at Commerzbank, said these political developments carried echoes of autocratic countries, where heads of statistics agencies or central banks are replaced and critical data series often discontinued or manipulated. 'I'm not saying that this will necessarily happen here. But the developments of the last few days and weeks do not exactly fill me with optimism about the future, or the US dollar,' Pfister said. Trump also hit out at Goldman Sachs CEO David Solomon, saying the bank had been wrong to predict US tariffs would hurt the economy. Trump questioned whether Solomon should lead the Wall Street institution. The dollar's weakness supported the euro and sterling. The single currency was last up 0.3% to $1.1705, briefly hitting its highest since July 28. Similarly, the British currency rose 0.5% to $1.3572, briefly hitting its highest since July 24. Britain's jobs market weakened again, though wage growth stayed strong, according to data on Tuesday, underscoring why the Bank of England is so cautious about cutting interest rates. The Australian dollar was up 0.3% to $0.6550, while the New Zealand dollar rose 0.5% to $0.5982. The Reserve Bank of Australia on Tuesday cut interest rates as expected, and signalled further policy easing might be needed to meet its inflation and employment goals as the economy lost some momentum. In cryptocurrencies, ether scaled a nearly four-year high of $4,734.47.
Business Recorder
11 hours ago
- Business Recorder
Rupee extends winning streak against US dollar
Rupee's Performance Against US Dollar Since 04 March 2025 The Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.07% in the inter-bank market on Wednesday. At close, the currency settled at 282.22, a gain of Re0.20. On Tuesday, the rupee had closed at 282.42. This marks the fifth successive session of appreciation for the rupee, supported by improved sentiment in the currency market amid an ongoing crackdown by the law enforcement agencies against illegal currency dealers and smugglers. Last week, a Pakistan court sentenced three illegal currency dealers to five years in prison and imposed a fine of Rs1 million on each for their involvement in unlawful foreign exchange trading. Internationally, the US dollar weakened on Wednesday after a tame reading on US inflation bolstered expectations of a Federal Reserve rate cut next month, with President Donald Trump's attempts to extend his grip over US institutions also undermining the currency. US consumer prices increased marginally in July, data showed on Tuesday, in line with forecasts and as the pass-through from Trump's sweeping tariffs to goods prices has so far been limited. Investors eyeing imminent Fed cuts cheered the data and moved to price in a 98% chance the central bank would ease rates next month, which in turn dragged on the dollar. Against the yen, the dollar was last 0.05% lower at 147.76, while the euro was steady at $1.1676, having risen 0.5% in the previous session. The dollar index last stood at 98.08, after falling roughly 0.5% on Tuesday. US Treasury yields similarly fell on the heightened rate cut expectations, with the two-year yield last at 3.7371%, having swung in a range of nearly 10 basis points on Tuesday. The benchmark 10-year yield was little changed at 4.2965%. Oil prices, a key indicator of currency parity, erased losses on Wednesday after U.S. Treasury Secretary Scott Bessent said sanctions against Russia or secondary tariffs could go up if Friday's meeting between President Donald Trump and Russian President Vladimir Putin does not go well. Brent crude futures edged up 6 cents to $66.18 a barrel by 1243 GMT, while U.S. West Texas Intermediate crude futures were up 2 cents to $63.19. Inter-bank market rates for dollar on Wednesday BID Rs 282.22 OFFER Rs 282.42 Open-market movement In the open market, the PKR gained 10 paise for buying and lost 8.93 rupees for selling against USD, closing at 283.70 and 293.83, respectively. Against Euro, the PKR lost 2.30 rupees for buying and 2.28 rupees for selling, closing at 331.25 and 333.38, respectively. Against UAE Dirham, the PKR gained 9 paise for buying and 6 paise for selling, closing at 77.19 and 77.49, respectively. Against Saudi Riyal, the PKR gained 4 paise for both buying and selling, closing at 75.49 and 75.81, respectively. Open-market rates for dollar on Wednesday BID Rs 283.70 OFFER Rs 293.83
Business Recorder
11 hours ago
- Business Recorder
Oil edges up after US warning on Russia sanctions
LONDON: Oil prices erased losses on Wednesday after U.S. Treasury Secretary Scott Bessent said sanctions against Russia or secondary tariffs could go up if Friday's meeting between President Donald Trump and Russian President Vladimir Putin does not go well. Brent crude futures edged up 6 cents to $66.18 a barrel by 1243 GMT, while U.S. West Texas Intermediate crude futures were up 2 cents to $63.19. Before Bessent's comments, both contracts were lower after the International Energy Agency on Wednesday raised its forecast for oil supply growth this year but lowered its demand forecast due to lacklustre fuel demand across the major economies. Still, the price moves were limited ahead of Trump's meeting with Putin in Alaska to discuss ending Russia's war in Ukraine, which has shaken oil markets since February 2022. Meanwhile, in its monthly report on Tuesday, OPEC+ raised its global oil demand forecast for next year and trimmed estimates of supply growth from the United States and other producers outside the wider group, pointing to a tighter market. 'Were we to take an aggregate of the respective IEA and OPEC oil demand growth projections for 2025 at their respective bearish and bullish ends, even a modest middle figure, say just north of 1 million bpd, can easily be serviced by non-OPEC supply growth alone at the moment,' said independent energy analyst Gaurav Sharma. 'So, I don't see a bullish case for oil over the near-term horizon.' Meanwhile, crude inventories in the United States, the world's biggest oil consumer, rose by 1.52 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. Analysts polled by Reuters expect today's Energy Information Administration report to show crude inventories fell by about 300,000 barrels last week.
