Market correction ends as yellow metal hits Rs301,500
Gold prices in Pakistan increased on Monday, reflecting the rise in international rates. In the local market, the price of gold per tola climbed by Rs1,500, reaching Rs301,500, while 10-gram gold was sold at Rs258,487 after an increase of Rs1,286, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
This rise follows a decline of Rs500 per tola on Saturday, highlighting the volatility in gold prices. Internationally, gold also witnessed an increase, with its rate reaching $2,869 per ounce (including a $20 premium), marking a $12 gain during the day.
According to Adnan Agar, Director of Interactive Commodities, gold prices had recently seen a correction, which was expected. On Friday, the price hit a low of $2,832 per ounce before closing at $2,871.50. The market rebounded on Monday, rising to $2,882 and reaching a daily high.
Agar suggested that gold might bounce back towards $2,900, but resistance is expected at that level. If the price sustains above $2,900, further upward momentum could push it towards $3,000. However, if it remains below this threshold, there is a possibility of further correction, potentially bringing gold down to $2,880 or even $2,850.
The closing price in the coming days will be crucial in determining gold's next movement. If it closes above $2,950, a strong upward trend could develop. However, if it stays below, there is potential for further declines before another upward push.
Globally, gold prices rose on Monday after a slump to a three-week low in the previous session, driven by a weaker dollar and safe-haven buying in response to concerns over US President Donald Trump's tariff policies.
Spot gold gained 0.5% to $2,873.11 an ounce as of 1429 GMT. US gold futures rose 1.3% to $2,884.50.
The dollar index dropped by 0.8%, moving away from a more than two-week high hit in the previous session, reflecting weakness that makes dollar-priced gold less expensive for buyers holding other currencies.
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