Gold steady for 2nd day
Gold prices in Pakistan remained unchanged for the second consecutive day, an unusual occurrence given recent economic trends, with the yellow metal being sold at Rs306,000 per tola on Tuesday, the same as in the previous session.
Similarly, 10-gram gold was priced at Rs262,345, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Monday, gold prices also held firm at Rs306,000 per tola.
International prices for the Pakistani market remained steady on Tuesday. According to APGJSA, the global rate was recorded at $2,910 per ounce, including a $20 premium.
Adnan Agar, Director of Interactive Commodities, noted that the market showed slight instability. He mentioned that gold had touched a low of $2,880 and was currently around $2,820, with an intraday high of $2,925-$2,926. He added that if this trend continues, gold prices are likely to remain stable. However, if the market rebounds or Donald Trump introduces policy changes or delays certain tariffs, gold prices could decline.
Globally, gold prices gained nearly 1% on Tuesday amid a weaker dollar and economic slowdown worries due to tariff wars, while investors awaited a key inflation report that could shed light on US monetary policy.
Spot gold was 1% firmer at $2,919.29 an ounce as of 1509 GMT. US gold futures were 0.9% higher at $2,926.30. The US dollar index hit its lowest level since early November. A softer dollar makes greenback-priced bullion more affordable for other currency holders.
"Gold is likely to remain supported amid ongoing market uncertainties, bolstering demand for the safe-haven asset. However, any positive developments in Russia-Ukraine negotiations could reduce risk premiums," said Zain Vawda, a market analyst at MarketPulse by OANDA. The tariff policies implemented by Trump against key trading partners have caused significant volatility in global markets and heightened concerns about economic growth.
Meanwhile, the Pakistani rupee saw a slight appreciation against the US dollar, rising by 0.04% in the interbank market on Tuesday. By the end of the trading session, the rupee settled at 279.95, marking a gain of 12 paisa against the greenback. On Monday, the currency had closed at 280.07.
The last time the rupee closed above 280 against the US dollar was in January 2024.
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