Gold touches record highs again
Gold prices in Pakistan surged to a new all-time high on Monday, reflecting global market trends. The price of gold per tola climbed by Rs1,500, reaching Rs309,500. Likewise, the rate for 10 grams of gold rose by Rs1,286 to settle at Rs265,346, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
On the preceding Saturday, gold prices had already increased by Rs1,000, bringing the per tola price to Rs308,000. Globally, however, gold prices saw a decline on Monday as traders secured profits following recent record highs. The market focus has now shifted to an upcoming US inflation report, which could influence future price movements.
According to Adnan Agar, Director of Interactive Commodities, gold has once again tested its recent peak of 2955. However, the market has slightly dipped to around 2940. He noted that this week is critical in determining gold's next move, with the possibility of either further price increases or a correction. Agar emphasised that gold appears to be showing signs of exhaustion, which could lead to further movement in either direction. The gold price surge in Pakistan aligns with international trends, where inflation concerns and economic uncertainty continue to drive demand for the precious metal.
Globally, gold prices surged to a record high on Monday, driven by safe-haven demand amid concerns over US President Donald Trump's tariff plans, with additional support coming from inflows into the world's top gold-backed exchange-traded fund.
Spot gold rose 0.2% to $2,941.60 an ounce as of 1433 GMT. It hit $2,956.15 earlier in the session - its eleventh record high in 2025. US gold futures added 0.2% to $2,957.50.
The US dollar index touched its lowest level since December 10 earlier in the session, making bullion more affordable for buyers using other currencies.
Meanwhile, the Pakistani rupee experienced a slight decline against the US dollar, weakening by 0.03% in the interbank market on Monday. By the close of the trading session, the rupee stood at 279.66, marking a depreciation of Rs0.09 against the dollar.
Over the past week, the local currency also faced a downward trend, losing Rs0.36 or 0.13% in the interbank market. According to the State Bank of Pakistan (SBP), the rupee had closed at 279.57, compared to 279.21 a week earlier. Zafar Paracha, of the Exchange Companies Association of Pakistan (ECAP), said the SBP is supporting the US dollar by purchasing it to assist exporters; otherwise, the dollar could depreciate against the rupee.
Between June and November 2024, the SBP's net foreign exchange interventions reached $5 billion, according to AHL. This strategic action led to a $2.9 billion increase in the country's foreign exchange reserves, with the remaining amount allocated toward managing the country's debt repayments.
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