Gold sees correction of Rs2,000 after record high
Listen to article
After reaching a record high in previous sessions, the price of gold per tola in Pakistan underwent a minor correction, dropping by Rs2,000 due to a decline in international rates. On Friday, gold per tola was priced at Rs307,000 following the decrease, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Just a day earlier, on Thursday, the price had risen by Rs1,000, hitting an all-time high of Rs309,000 in Pakistan.
At the global level, gold prices also saw a dip on Friday. According to APGJSA, the global price stood at $2,930 per ounce, reflecting a $23 drop for the day.
"The recent correction in gold prices is relatively minor," said Adnan Agar, Director of Interactive Commodities. He added that the market is due for a deeper correction. Gold initially opened at $2,916 and reached a high of $2,950 before settling at $2,930. Agar suggested that if a proper correction takes place, gold could fall to the $2,800 level before stabilising. If the price reaches $2,780-$2,800, the market would likely adjust, potentially creating a foundation for a future upward move.
He noted that gold has shown downward momentum recently, especially around the $2,940-$2,950 range, where the market has repeatedly pulled back, indicating a resistance level. If this pattern continues, selling pressure may increase. Agar further explained that the coming week will be critical in determining the market's direction. Without a significant correction, gold prices may regain strength and trend upward again.
Geopolitical tensions, particularly between Russia and Ukraine, are influencing market sentiment, he said. Traders are closely monitoring these global events for potential impacts on gold prices.
APSGJA President Mohammad Qasim Shikarpuri highlighted increasing volatility in gold prices, linking it to ongoing policy changes by US President Donald Trump. He mentioned that the imposition of tariffs on Canada, Mexico, and China has further fuelled market instability. Countries are now increasingly preferring to trade in gold instead of US dollars, signalling a shift away from the dollar's dominance in international trade.
Meanwhile, the Pakistani rupee depreciated slightly against the US dollar, weakening by 0.04% in the inter-bank market on Friday. By session's close, the rupee stood at 279.57, down by 11 paisa against the US dollar. The US dollar is on track for its third consecutive weekly decline as traders assess Trump's second-term rhetoric on tariffs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
4 hours ago
- Business Recorder
Budget FY2025-26: Sindh announces to expand sales tax to all major services
The Sindh government has announced to tax 'all services' excluding essential and social services, aiming to 'expand the sales tax base and also reduce possible tariff disputes and litigations', according to budget documents released on Friday. The provincial government announced its budget for the financial year 2025-26 on Friday, with Chief Minister Murad Ali Shah unveiling proposals for Rs3.45 trillion total outlay, with a deficit of Rs38.46 billion. According to Sindh Revenue Board (SRB) website, the general rate of Sindh Sales Tax on services is 15% with the exception of telecommunication services, which are liable to be taxed at 19.5%. Tax is levied at reduced or concessionary rates in certain cases. Sindh budget documents suggest the province is targeting to collect Rs388 billion in provincial sales tax on services and taxes from agriculture in FY26. The province is projected to collect Rs300 billion in Sindh Sales Tax on services in FY25, 35% higher compared to FY24. 'The Sindh Sales tax on services has been the mainstay of provincial revenues,' CM Murad Ali Shah said during his budget speech at the provincial assembly. 'Under the existing law, all major services are taxable and a smaller segment of services is not taxable. This situation creates disputes regarding taxability of services, which leads to unnecessary litigation and also problems for the taxpayers. 'Therefore, the decision is being made to transform to negative list regime by taxing all services but at the same time taking care that essential and social services are kept exempt that a significant part of new services is subjected to reduced rate,' he said. On the other hand, the Sindh government has proposed to completely remove five levies including professional tax, cotton fee, entertainment duty, local cess and drainage cess, according to budget documents. The tax relief measures would 'reduce the financial burden on both individuals and businesses,' Murad Ali Shah speech text read. Sindh govt presents Rs1.02trn Annual Development Programme for FY2025-26 'The professional tax affects salaried people and small businesses. The cotton fee adds cost to the agriculture and textile sectors.' Besides, the yearly tax under the Motor Vehicle Ordinance for commercial vehicle is being reduced to Rs1,000, 'giving relief to transport and goods carriers'. 'There is also a proposal to end the requirement for third party insurance for motorcycle. 'The mutation fee and sales certificate fees are being reduced to Rs500 from Rs1,000,' the chief minister said. According to Sindh Revenue Board (SRB) website, the general rate of Sindh sales tax on services is 15% with the exception of telecommunication services, which are liable to be taxed at 19.5%. Tax is levied at reduced or concessionary rates in certain cases.
Business Recorder
5 hours ago
- Business Recorder
Gold price per tola gains Rs4,600 in Pakistan
Gold prices in Pakistan increased on Friday in line with their surge in the international market. In the local market, gold price per tola reached Rs361,500 after it gained Rs4,600 during the day. As per the rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), 10-gram gold was sold at Rs310,007 after it gained Rs4,023. On Thursday, gold price per tola Rs356,900 after it gained Rs4,000 during the day. The international rate of gold also surged on Friday. The rate was at $3,417 per ounce (with a premium of $20), an increase of $46, as per APGJSA. Meanwhile, silver price per tola increased by Rs35 to settle at Rs3,780.
Business Recorder
10 hours ago
- Business Recorder
UK's Commonwealth Startup Fellowship offers £35,000 in equity-free grants
Pakistani entrepreneurs can apply for a a six-month programme designed to 'ignite and elevate' high potential startups from low and middle-income countries across the Commonwealth. The programme is offered by Imperial College London and supported by the UK's Foreign, Commonwealth & Development Office. Applications are open until 30 June 2025. In addition to training and mentorship, participating teams can apply for financial support through the Fellows Fund, which offers a total of £35,000 in equity-free grants. Each startup may apply for up to £2,000 to cover business-related expenses and support the development and growth of their venture. According to its website, the programme will help startups through intensive in-person and online learning. 'You'll gain essential skills, tailored coaching, and access to a powerful global network to help you overcome barriers and scale up your business,' it stated. The programme begins in November 2025 with a fully funded two-week bootcamp in Accra, Ghana, plus ongoing online support with business coaching, expert-led sessions, and networking opportunities. One founder from each selected team will participate in-person, while co-founders and team members can access the remote portion, connecting with global mentors and industry experts from across the Commonwealth. The website states that by the end of the programme, startups will learn how to refine business plans, scale operations, implement lean practices, and develop go-to-market strategies to drive sustainable growth. They will also be able to dentify and develop personal leadership styles, enhance team dynamics, address skills gaps, and promote diversity to build effective teams. The programme will help them to understand and navigate local and global entrepreneurial ecosystems, identify key players, and leverage partnerships to support venture growth.
