Gold down on lacklustre market movement
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Gold prices in Pakistan fell on Tuesday, following a decline in the international market. In the local market, the price of gold per tola dropped by Rs800, reaching Rs317,800. Similarly, the price of 10 grams of gold decreased by Rs686, settling at Rs272,462, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
On Monday, gold prices had risen by Rs600, bringing the per tola rate to Rs318,600. The international gold price for Pakistan also saw a decline on Tuesday. According to APGJSA, the global rate stood at $3,021 per ounce (including a $20 premium), marking a drop of $6 for the day.
Adnan Agar, Director of Interactive Commodities, commented on the market conditions, stating that gold had reached a high of $3,035 before settling at $3,029 at Pakistan Mercantile Exchange Limited (PMEX), with the day's low at $3,007. He described the market as somewhat lacklustre, fluctuating within the $3,005$3,035 range over the past couple of days.
He noted that there were expectations of a possible peace deal between Ukraine and Russia, with updates anticipated within the next few days or by the weekend. Ukrainian and US delegations are scheduled to meet on Tuesday in Saudi Arabia, following Russia-US talks there a day earlier on a limited Black Sea ceasefire proposal that Washington hopes will open the way for broader peace negotiations.
Due to this uncertainty, the market remained cautious. However, Agar pointed out that the US stock market had stabilised and improved after a period of decline. If a peace agreement between Ukraine and Russia is signed, Agar suggested that gold prices could drop further.
Globally, gold prices rose on Tuesday, supported by safe-haven demand amid uncertainty over US President Donald Trump's tariff plans for next week, which could potentially boost inflation. Spot gold was up 0.3% at $3,021.39 an ounce, while US gold futures rose 0.4% to $3,026.20.
Meanwhile, the Pakistani rupee experienced a slight depreciation against the US dollar, weakening by 0.02% in the interbank market on Tuesday. By the end of the trading session, the rupee closed at 280.42 against the dollar, marking a decline of 5 paisa from the previous day. On Monday, it had settled at 280.37.
On the global front, the US dollar strengthened against the Japanese yen, as President Donald Trump indicated that not all proposed tariffs would take effect on April 2, and certain countries might receive exemptions. This announcement provided support to the US dollar and improved market sentiment on Wall Street by easing concerns over a potential slowdown in US economic growth.
As a result, the US dollar surged 0.9%, surpassing 150 yen before climbing further in the Asian session to a three-week high of 150.92 yen. The dollar also reached its strongest level against the euro since March 6, hitting $1.0781 as the euro's recent rally lost momentum. It was last trading at $1.0796, while the British pound fell to a two-week low of $1.2883 before stabilising at $1.2918 in Asian trade.
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