Gold takes breather, gains modest Rs700/tola
The gold market experienced a quiet session, reflecting the absence of any major statements from US President Donald Trump. In Pakistan, prices saw a relatively minor increase of Rs700 per tola, reaching Rs307,000 on Wednesday.
Similarly, the price of 10-gram gold rose by Rs601, settling at Rs263,203, as per the rates provided by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Tuesday, gold prices had already witnessed a significant increase of Rs4,800 per tola, bringing the rate to Rs306,300.
Globally, gold prices also rose on Wednesday. According to APGJSA, the international gold rate stood at $2,921 per ounce (including a $20 premium), reflecting a $5 increase during the day.
"The market remained relatively quiet," Adnan Agar observed. Gold traded between $2,822 and $2,894 per ounce throughout the day. As of now, the market is moving around $2,912 per ounce. He noted that while a drop below $2,800 could have led to a further downturn, the market has remained quiet, awaiting new developments. He further stated that market activity is subdued due to a lack of significant updates, particularly from US trade negotiations with Canada and Mexico. Back-channel discussions are ongoing, but no official announcements have been made, leading to a wait-and-see approach among traders. Additionally, the ongoing situation in the US has contributed to uncertainty, keeping investors cautious.
On the global level, gold remained steady despite a lower dollar, as investors held back from making large bets ahead of the release of US payroll data later this week. Trade war jitters kept prices above the key level of $2,900 per ounce. Spot gold was down 0.1% at $2,913.79, while US gold futures rose 0.1% to $2,923.70. Bullion remained subdued despite the US dollar dropping more than 1% to a four-month low.
Meanwhile, the Pakistani rupee saw a slight decline against the US dollar, depreciating by 0.04% in the interbank market on Wednesday. By the end of the trading session, the rupee settled at 279.87, marking a 10-paisa loss compared to Tuesday's closing rate of 279.77.
On the global front, the US dollar remained near a three-month low against major currencies as concerns over a potential trade war intensified following the latest round of US tariffs and retaliatory measures from Canada and China.
In Wednesday's T-Bill auction conducted by the State Bank of Pakistan (SBP), total participation stood at Rs1.237 trillion, with the government raising Rs569 billion against a target of Rs700 billion and a maturity of Rs946 billion.
Yields remained unchanged, with current rates at 11.82% for the 3-month T-Bill, 11.67% for the 6-month T-Bill, and 11.64% for the 12-month T-Bill.
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