Gold sees Rs1,600 per tola correction
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KARACHI:
After reaching an all-time high in the previous session, gold prices in Pakistan dropped on Wednesday, mirroring a decline in international markets. The price of gold per tola fell by Rs1,600, settling at Rs301,500, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Similarly, the 10-gram gold rate dropped by Rs1,372, bringing it down to Rs258,487.
On Tuesday, gold had been stable, with a surge of Rs100 per tola, reaching a record high of Rs303,100. However, the global market saw a downturn on Wednesday, with international gold prices falling by $16 to $2,888 per ounce.
Adnan Agar, Director at Interactive Commodities, attributed this correction to unfavourable market data. He noted that gold hit an intraday low of $2,864 before recovering to $2,895. The session's high was $2,900, but data trends, including last year's average US inflation rate of 2.9%, which has now risen to 3%, did not support further gains. Agar suggested that gold was undergoing a natural price adjustment before potentially rebounding. He stated that if the closing price surpasses $2,905, the metal could move higher. However, if it fails to reach that point, further declines towards $2,860$2,890 could follow.
Meanwhile, the Pakistani rupee weakened slightly against the US dollar, depreciating 0.03% to close at 279.26 in the inter-bank market on Wednesday, down 9 paisa from the previous day, according to the State Bank of Pakistan (SBP).
Globally, the US dollar retreated from its tariff-driven rally, with traders awaiting US inflation data and trade updates. The US dollar gained 0.3% against the yen, crossing 153 yen for the first time in a week, but saw minor losses against the euro at $1.0357. Meanwhile, the EU, Mexico, and Canada condemned US tariffs on steel and aluminium, warning of countermeasures. Federal Reserve Chair Jerome Powell reaffirmed that the Fed is in no rush to cut interest rates during his testimony to Congress.
Additionally, the Pakistan Investment Bonds (PIB) Fixed Rate Auction held on Wednesday saw the government accepting bids worth Rs476.4 billion against a target of Rs350 billion. The total bids received amounted to Rs910.7 billion, reflecting strong investor interest. For the 02-Year PIB, Rs233.5 billion in bids were received, with Rs95.2 billion accepted at a cut-off yield of 11.69%, which was 0.25% lower than the previous auction and 0.11% lower than secondary market yields.
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Gold price per tola gain Rs600 in Pakistan
Gold prices in Pakistan increased on Wednesday in line with their surge in the international market. In the local market, gold price per tola reached Rs352,900 after it gained Rs600 during the day. Similarly, 10-gram gold was sold at Rs302,554 after it gained Rs514, according to the rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Tuesday, gold price per tola reached Rs352,300 after a decline of Rs6,100 during the day. The international rate of gold also surged on Wednesday. The rate was at $3,345 per ounce (with a premium of $20), an increase of $6, as per APGJSA. Meanwhile, silver price per tola remained stable at Rs3,745.
