Despite holidays, gold's record rally continues
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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.
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