Gold soars to record highs of Rs348,000/tola
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Gold prices continued their record-breaking surge on Wednesday, defying analysts' expectations of a market correction, as both domestic and international rates reached new all-time highs.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola in Pakistan soared by Rs8,600 in a single day, settling at a historic high of Rs348,000. Similarly, the rate for 10 grams rose by Rs7,373 to close at Rs298,353.
The international prices for Pakistan also saw a notable jump, with gold prices climbing $86 during the day to reach a record $3,310 per ounce, inclusive of a $20 premium.
Commenting on the development, Adnan Agar, Director at Interactive Commodities, said gold continued its upward momentum, touching a record high of $3,319 before slightly retreating to $3,318. "Today's rally wasn't driven by any fresh news, particularly from the US side. Rather, it's a continuation of a multi-day bullish trend," he noted, adding that lingering concerns around the global trade war remain an underlying factor.
Agar further cautioned that while there might still be room for another $25 upside, the market is approaching technically overbought territory. "Once that threshold is hit, a correction of $100150 can be expected," he said.
On Tuesday, gold per tola had already climbed by Rs600 to close at Rs339,400, highlighting the persistent demand and bullish sentiment in the market.
Meanwhile, the Pakistani rupee posted a slight gain against the US dollar on Wednesday, appreciating by 0.04% in the inter-bank market.
By the close of trade, the rupee settled at 280.46, up by Rs0.11 from the previous day's closing rate of 280.57.
On the global front, the US dollar held onto a modest rebound, as investors paused after several weeks of heavy selling, with markets steadying ahead of further developments in US trade negotiations. Moreover, the State Bank of Pakistan (SBP) raised a total of Rs1.225 trillion through two separate auctions held on April 16, 2025.
In the Pakistan Investment Bond - Floating Rate (PFL) Semi-Annual Auction, SBP raised Rs260.83 billion, with Rs67.62 billion from 5-year bonds and Rs193.21 billion from 10-year bonds. Notably, all bids for the 2-year bonds were rejected. In the Market Treasury Bills (MTBs) Auction, SBP raised Rs964.63 billion across various tenors. The breakdown included Rs284.38 billion from 1-month bills, Rs135.02 billion from 3-month bills, Rs76.24 billion from 6-month bills, and Rs469 billion from 12-month bills.
Combining both auctions, the central bank mobilised a substantial amount to meet government financing needs, reflecting investor confidence in Pakistan's short and medium-term debt instruments.
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