Gold prices, rupee value depreciate
The rupee experienced a minor decline against the US dollar, depreciating by 0.03% in the interbank market on Monday. By the close of trading, the rupee settled at 278.83, reflecting a loss of 8 paisa compared to the previous trading day. Over the past week, the rupee remained relatively stable, closing at 278.75, a slight drop from 278.71, according to the State Bank of Pakistan (SBP).
Market experts attribute the rupee's depreciation to three key factors: rising imports of around $5 billion per month, the SBP's dollar purchases to absorb surplus supply, and foreign loan repayments by the central bank.
Internationally, the US dollar strengthened on Monday as traders evaluated the implications of US President Donald Trump's tariff policies. Although the dollar recorded its weakest performance since November 2023 last week due to diminished tariff concerns, fears resurfaced after Trump announced sweeping measures against Colombia. The tariffs and sanctions came in response to Colombia's refusal to permit US military aircraft carrying deported migrants to land, reigniting market uncertainty as the Federal Reserve is expected to keep interest rates steady.
Meanwhile, gold prices in Pakistan continued their decline on Monday, in line with global market trends. The price of gold per tola dropped by Rs300 to Rs289,100, while the price for 10 grams fell by Rs257 to Rs247,856, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This follows a Rs200 decrease over the weekend. Globally, gold prices dropped by $3 to $2,767 per ounce on Monday, down from Friday's high of $2,785. Market analyst Adnan Agar, Director at Interactive Commodities, predicts gold will trade between $2,730 and $2,750 in the near term. Prices falling below this range could trigger a significant downward trend. However, stabilisation is more likely, with upcoming US monetary policy decisions expected to further influence gold prices.
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