Despite holidays, gold's record rally continues
Listen to article
Despite holidays, gold surged to a new peak on Saturday, maintaining its record-breaking streak in Pakistan by mirroring international markets. The price of gold per tola surged by Rs1,620 to settle at Rs325,000.
Likewise, the price of 10-gram gold rose by Rs1,389 to Rs278,635, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
International gold prices also saw an upward trend. As per APSGJA, the global rate stood at $3,084 per ounce (including a $20 premium), higher by $10.
On Friday, gold had climbed by Rs2,380, closing at the previous record high of Rs323,380 per tola.
Interactive Commodities Director Adnan Agar said that the Pakistan Mercantile Exchange (PMEX) was closed on Saturday, so no trading took place.
Internationally, gold prices surged to a record high on Friday as investors flocked to the safe-haven asset amid fears of a global trade war triggered by US President Donald Trump's latest tariffs.
Spot gold climbed 0.6% to $3,074.43 an ounce after hitting its 18th record high this year at $3,086.70 earlier in the session. Bullion was up 1.7% this week. US gold futures settled 0.8% higher at $3,114.30.
"It continues to be safe-haven demand on ramped-up concerns about tariffs, trade and ongoing geopolitical uncertainty," that is supporting gold, said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.
Gold, traditionally seen as a hedge against economic and political instability, tends to thrive in a low interest rate environment.
The Personal Consumption Expenditures (PCE) price index increased 0.4% in February, compared with analysts' expectation of 0.3% rise, similar to January's increase.
The data isn't likely to change rate cut expectations very much, as it is only a little hotter than expected, Grant added.
The Federal Reserve has held interest rates steady so far this year after three rate cuts in 2024, but hinted at potential rate cuts of half percentage points later in the year.
The market is currently pricing in 63 basis points in Fed rate cuts by year-end, starting in July.
Markets are now bracing for Trump's plans for reciprocal tariffs, which he intends to lay out on April 2. His policies are perceived as inflationary, posing a risk to economic growth and escalating trade tensions, analysts say.
Spot silver fell 1.4% to $33.93 an ounce, platinum eased 0.7% to $979.10, and palladium was down 0.3% to $972.13. All three were set for weekly gains.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
20 minutes ago
- Express Tribune
Govt sets record petroleum levy target at Rs1.47tr
Listen to article The government has set an ambitious target for petroleum levy (PL) on petroleum products for the next fiscal year, which would result in denying consumers relief despite a reduction in international oil prices. The Economic Coordination Committee (ECC) recently increased the maximum cap of petroleum levy to Rs90 per litre. Keeping in view the higher limit of the petroleum levy, the government has decided to increase the revenue collection target on account of PL on petroleum products. According to budget documents, the government has raised the petroleum levy collection target by 26% for the next fiscal year. The government has set a petroleum levy collection target of Rs1,468.395 billion for the upcoming fiscal year. This represents a substantial rise of Rs307.395 billion compared to the current revised estimates of Rs1,161 billion for the ongoing fiscal year. It is also considerably higher than the original budgeted PL target of Rs1,281 billion for the outgoing fiscal year 2024-25. The PL revenue has been given high priority by successive federal governments as it is not part of the Federal Divisible Pool (FDP) that must be shared with the provinces under the National Finance Commission (NFC) formula. This is why the government has increased the rate of petroleum levy on petroleum products while maintaining a zero rate of general sales tax, thereby depriving the provinces of revenue collection. A budgeted target of Rs105 billion has been set through the imposition of a levy on Off-the-Grid (Captive Power Plants) for the next fiscal year. The National Assembly passed the "Off-the-Grid (Captive Power Plants) Levy Bill, 2025." This levy will initially be 5%, increasing to 10% by July 2025, 15% by February 2026, and 20% by August 2026. The government has also proposed to increase the Gas Infrastructure Development Cess (GIDC) collection to Rs2.4 billion for the next fiscal year, up from the revised current estimate of Rs1 billion. The GIDC was originally budgeted at Rs2.5 billion for the current fiscal year. The previous Pakistan People's Party (PPP) government imposed this cess to generate revenue meant for building mega oil and gas pipelines. However, the textile industry and other industrial barons obtained stay orders, and the issue was taken up by the Supreme Court of Pakistan during the Pakistan Tehreek-e-Insaf (PTI) government. In June 2020, the Supreme Court of Pakistan ruled that various sectors of the economy must clear outstanding GIDC payments worth Rs407 billion in instalments, but the government failed to receive payments due to industries obtaining stay orders again. Natural Gas Development Surcharge (GDS) — the difference between the prescribed and sale price of gas that goes to provinces — has also been projected to bring Rs49.437 billion in revenue next year against the original budgeted Rs25.618 billion and revised Rs48 billion in the outgoing fiscal year. The government has also envisaged collecting Rs5 billion in PL on Liquefied Petroleum Gas (LPG) in the next fiscal year 2025-26, compared to the revised target of Rs3.156 billion for the current fiscal year. The original budget for the PL on LPG in the current fiscal year was Rs3.537 billion. The budget for fiscal year 2025-26 also envisages Rs30 billion to be retained as a discount on local crude oil prices. This is higher than the revised estimate of Rs25 billion for the current fiscal year. The original budget for the current year was also Rs25 billion. The budget for next year also proposes an increase in royalty on crude oil and natural gas for provinces. The budgeted amount for royalty on crude oil is set at Rs69 billion for the next financial year against the revised estimate of Rs64 billion for the outgoing year. The government budgeted Rs38 billion in royalty on natural gas in the next financial year against a revised target of Rs135 billion and an original budget of Rs103.751 billion in 2024-25. Next year's budget envisages Rs20 billion on account of windfall levy on crude oil against a budgeted amount of Rs28 billion for the current financial year 2024-25. Windfall levy on gas has been budgeted at Rs450 million, which was also the revised estimate for the current fiscal year.
Express Tribune
34 minutes ago
- Express Tribune
PSX soars to new peak
Listen to article The Pakistan Stock exchange (PSX) closed at a record high on Tuesday, though the benchmark KSE-100 index fluctuated within a narrow range amid uncertainty surrounding the budget announcement. The index registered the intra-day high of 970 points and intra-day low of 51 points, before settling at 122,024, an increase of 383 points. Analysts noted that the record budget outlay of Rs17.6 trillion, alongside approval of Rs800 billion for the Public Sector Development Programme (PSDP), played a key role in the record high close at the PSX. The IMF's approval of bank loans to settle the Rs2 trillion circular debt and speculation about tariff rationalisation buoyed market sentiment. According to Ahsan Mehanti of Arif Habib Corp, stocks reached an all-time high, led by blue chips, as investors weighed a record budget outlay of Rs17.6 trillion and the approval of Rs800 billion for the PSDP. He added that surging global crude oil prices, the IMF's approval of bank loans to resolve the Rs2 trillion circular debt crisis in the gas sector and speculation about rationalisation of import tariffs in the federal budget played the role of catalysts in bullish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded an increase of 383.44 points, or 0.32%, and settled at 122,024.44. In its review, Topline Securities commented that the stock market witnessed a range-bound session, with the index fluctuating within a narrow band, amid uncertainty surrounding the budget announcement. The index recorded the intra-day high of 970 points and intra-day low of 51 points. It closed at 122,024, up 383 points.
1595079124-0%2FWebp-net-resizeimage-(6)1595079124-0.jpg&w=3840&q=100)
Express Tribune
an hour ago
- Express Tribune
Youth preferring to shop and earn online taxed
Listen to article In a highly unusual move, the government has proposed to extract Rs64 billion in the next fiscal year by taxing the digital, online platforms as well as courier services, which may discourage digitalisation of the economy and youth of the country. From 0.25% to 5%, the new tax has been imposed on digital service providers, e-commerce platforms, websites, social media platforms and poor courier doing business of delivering goods at homes and receiving cash on delivery. The government has defined the digitally delivered services as any service delivered over the internet or electronic networks, where the delivery is automated and requires minimal or no human intervention including music, audio and video streaming services, cloud services, online software application services, services delivered through online interpersonal interaction, ie, telemedicine, e-learning etc, online banking services, architectural design services, research and consultancy reports, accounting services in the form of digital files or any other online facility. E-commerce has been defined as the sale or purchase of goods and services conducted over computer networks by methods specifically designed for the purpose of receiving or placing orders either through websites, mobile applications or online marketplaces having digital ordering features by using either mobile phones, iPads, Tablets or automated computer-to-computer ordering systems. The government has introduced a new law whereby it will charge every foreign vendor having significant digital presence in Pakistan in the name of Digital Presence Proceeds Tax on proceeds of every supply made from outside Pakistan of digitally ordered services or goods, irrespective of whether delivered digitally or physically. It has proposed a 5% tax on digital services. These foreign vendors will be liable to provide client-wise information of local vendors or foreign vendors with or without a permanent establishment whose advertisements are relayed in Pakistan through their platform and the amount received. Banks will be required to deduct the 5% tax. On the use of local online platforms, the government will charge a 1% tax where the amount does not exceed Rs10,000. Where the amount paid does not exceed Rs25,000, the rate will be 2% and where the amount exceeds Rs25,000, the tax rate will be 0.25%. Likewise, the government has introduced a new tax on cash on delivery by courier services. On the supply of electronic and electrical goods, the rate is 0.25%, on clothing articles, 2% of the gross amount will be charged and on other goods, the rate is 1% of the value. The government has also proposed fines on allowing unregistered persons to use online platforms without registering with the FBR. Where an online marketplace allows an unregistered vendor, whether resident or non-resident involved in e-commerce business supplying digitally ordered goods or services, who is required to register under the Sales Tax Act 1990 and Income Tax Ordinance 2001, under Section 181 before using the platform, he will be liable to a fine of Rs1 million. Where a banking company, payment gateway or courier service provider, as the case may be, fails to deduct tax at the time of making payment to a seller, or fails to pay the tax deducted as required under Section 160, with respect to digitally ordered goods or rendering or providing digitally delivered services using an e-commerce platform, he will be liable to a fine equal to 100% of the tax involved in the transaction.
