Gold prices plummet by Rs2,700/tola
KARACHI:
Gold prices in Pakistan declined on Tuesday, reflecting a drop in global market rates. In the local market, the price of gold per tola fell by Rs2,700, bringing it down to Rs286,400, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Monday, gold prices had also decreased, with the per tola rate falling by Rs300 to close at Rs289,100.
Globally, gold prices also experienced a decline early on Tuesday. According to APGJSA, the international gold rate was $2,741 per ounce, reflecting a drop of $26 during the day. However, gold prices rebounded from a dip triggered by a tech-led wider market sell-off, as increasing uncertainties over US President Donald Trump's proposed tariffs kept investor interest in the safe-haven asset.
Spot gold rose 0.4% to $2,751.66 per ounce by 1507 GMT. Gold had dropped over 1% in the previous session, marking its steepest decline since December 18, spurred by DeepSeek's low-cost, low-power AI model.
Adnan Agar, the Director of Interactive Commodities, noted that gold prices initially touched a low of $2,734, aligning with their earlier predictions. However, the market rebounded and is currently trading around $2,750 after reaching a high of $2,756. Agar highlighted that for the gold market to trend downward, closing below $2,730 is critical. "Without this, the market is likely to maintain an upward trajectory," he added.
He reiterated that while the market could potentially stabilise tomorrow, the US monetary policy announcement, expected late at night, will play a significant role in driving further gold price movements. If the market closes below $2,730, there's a chance it may revisit the $2,700 range. However, consistent rebounds from near $2,730 suggest continued strength in the gold market for now.
Meanwhile, the Pakistani rupee experienced a slight depreciation against the US dollar, dropping by 0.04% in the inter-bank market on Tuesday. By the end of the trading session, the currency stood at 278.93, marking a loss of 10 paisa compared to the dollar.
As reported by the State Bank of Pakistan (SBP), the rupee had closed at 278.83 on Monday. Internationally, the Japanese yen and the Swiss franc gained while the US dollar fell against major currencies on Monday amid a selloff in technology stocks as markets weighed the implications of a Chinese startup launching a free open-source artificial intelligence model.
China's DeepSeek rolled out a free AI assistant that it says uses lower-cost chips and less data, seemingly challenging a widespread AI bet that in the past has lifted shares of US technology stocks, especially chipmaker Nvidia.
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