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Express Tribune
19-05-2025
- Business
- Express Tribune
Gold up Rs4,000 as dollar dips
Gold prices in Pakistan continued their upward trajectory on Monday, mirroring gains in the international market where the yellow metal rose due to a weaker US dollar and renewed safe-haven demand following the US credit rating downgrade. In the domestic market, the price of gold per tola surged Rs4,000 to settle at Rs342,500, according to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Similarly, the price of 10-gram gold rose Rs3,429 to Rs293,638. This rally follows Saturday's momentum when gold rose Rs2,400 to hit Rs338,500 per tola, reflecting sustained buying interest and global cues. Analysts note that with the rupee holding relatively stable, gold's local price movements are being closely dictated by international trends and investor sentiment in response to the economic uncertainties abroad. Globally, gold prices drifted higher on Monday, steered by a softer dollar and safe-haven demand after Moody's downgraded the US government credit rating, according to Reuters. Spot gold rose 1% to $3,234.70 an ounce by 1050 EST (1450 GMT). Moody's cut the US rating to "Aa1" from "AAA" on Friday, citing rising debt and interest cost "that are significantly higher than similarly rated sovereigns". "Overall, over the next few months, I think gold is a good safe bet considering the downgrade on the United States. It's still to me a buy-and-hold market," said Bob Haberkorn, Senior Market Strategist at RJO Futures. The US dollar index hit its lowest level since May 8 while Wall Street's main indexes slipped. A weaker US currency makes gold less expensive for other currency holders. Financial markets were also rattled a bit when US Treasury Secretary Scott Bessent said on Sunday that President Trump would impose tariffs at the rate he threatened on April 2 if trading partners did not negotiate in "good faith." "Gold prices remained range bound on Monday, with limited movement observed in the international market," said Adnan Agar, Director at Interactive Commodities. Speaking on the day's trend, Agar noted that the metal traded within a narrow $50 band, fluctuating between a high of $3,250 and a low of $3,206. Meanwhile, the Pakistani rupee registered a slight decline against the US dollar, depreciating 0.04% in the inter-bank market. According to the State Bank of Pakistan (SBP), the local currency closed at 281.77, down Rs0.11 from the previous session. This follows a modest gain recorded last week, when the rupee appreciated Rs0.05, or 0.02%, closing at 281.66 compared to 281.71 a week earlier.
Express Tribune
15-05-2025
- Business
- Express Tribune
Gold plunges for second day in global and local markets
Listen to article Gold prices recorded a signficant drop in both international and domestic markets as the decline for a second consecutive day. According to All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola (11.66 grams) dropped by Rs6,700, bringing it down to Rs335,200. Similarly, the price of 10 grams of gold fell by Rs5,745, reaching Rs287,379. Yesterday in local markets, the per tola gold (11.66 grams) fell by Rs2,300, bringing the price to Rs341,900. The price of gold in the international bullion market declined by $67 per ounce, settling at $3,168. The sharp fall in global rates also impacted domestic prices in Pakistan. The price of silver also decreased, with one tola falling by Rs105 to Rs3,377. Gold prices fell to their lowest in more than a month on Thursday, as easing trade tensions between the world's two largest economies dented demand and investors awaited US economic data for further clarity on future interest rates. Spot gold was down 0.8% to $3,154.16 an ounce as of 0838 GMT, after hitting its lowest since April 10 earlier in the session. The US and China this week have agreed to reduce tariffs and implemented a 90-day pause, de-escalating a trade war and denting demand for gold as a safe haven. Gold, used as a store of value during times of political and financial uncertainty, scaled an all-time high of $3,500.05 per ounce last month, boosted by central bank buying, fears linked to a global tariff war, and strong investment demand.
Express Tribune
14-05-2025
- Business
- Express Tribune
Gold dips in local, global markets after one-day surge — May 14, 2025
Listen to article Gold prices have declined once again in both global and local markets today, following a one-day surge. The international bullion market saw the price drop by $23 per ounce, reaching $3,235 per ounce. According to All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the global dip impacted the local market in Pakistan, where per tola gold (11.66 grams) fell by Rs2,300, bringing the price to Rs341,900. Similarly, the price of 10 grams of gold dropped by Rs1,972, now standing at Rs293,124. Meanwhile, yesterday the price of gold rose by Rs3,700 per tola, reaching Rs344,200 in the local market. Gold prices fell on Wednesday as easing US-China trade tensions soothed fears of a potential global recession, boosting investors' appetite for risk and weighing on bullion's safe-haven appeal. Spot gold fell 0.4% to $3,233.26 an ounce, as of 1010 GMT. Prices scaled a record high of $3,500.05 last month amid elevated trade war fears. US gold futures eased 0.3% to $3,236.70. The US and China agreed to a 90-day suspension of reciprocal tariffs following discussions in Geneva over the weekend, with the US planning to reduce the "de minimus" tariff for low-value shipments from China to 30%, according to a White House executive order and industry experts. "After the tariff truce announced over the weekend, we've seen stock markets surge higher, and at least in the short term, this has removed some of the safe haven focus that has helped propel gold to record highs in recent months," said Ole Hansen, head of commodity strategy at Saxo Bank.
Express Tribune
14-05-2025
- Business
- Express Tribune
Gold regains Rs3,700 per tola
Listen to article Gold prices in Pakistan rebounded sharply on Tuesday, mirroring gains in the international market following a wave of bargain-hunting after Monday's sharp decline. A softer-than-expected US inflation report also supported the precious metal's recovery. According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold rose by Rs3,700 per tola, reaching Rs344,200 in the local market. Similarly, the price of 10-gram gold climbed Rs3,173 to settle at Rs295,096. The previous day (Monday), gold had plunged by Rs10,400 per tola, ending at Rs340,500. Globally, gold prices rose on Tuesday on bargain-hunting after a sharp loss in the previous day, while softer-than-expected inflation data from the US also lent support, according to Reuters. Spot gold rose 0.3% to $3,243.99 an ounce as of 1120 EST (1520 GMT), after falling as low as $3,207.30 on Monday. US gold futures were up 0.7% at $3,249.50. "We had a big correction in gold on Monday on the news that there is a deal made between the US and China," Bart Melek, Head of Commodity Strategies at TD Securities, said. "However, tariffs (on China) are still 30%, which is quite negative for the economy." The United States and China on Monday said they would pause their tariffs for 90 days. Following talks in Geneva over the weekend, the US said it will cut tariffs on Chinese imports to 30% from 145% while China said it would cut duties on US imports to 10% from 125%. Bullion had shattered multiple record highs in 2025 owing to concerns over economic slowdown following US President Donald Trump's sweeping tariffs, strong central bank buying, geopolitical tensions and increased flow into gold-backed exchange-traded funds. Commenting on market dynamics, Adnan Agar, Director at Interactive Commodities, said gold touched a high of $3,265 and a low of $3,215 during the session on the Pakistan Mercantile Exchange. "The US inflation data was better than expected, which initially pushed gold prices higher. The market later corrected but stabilised around $3,244," he noted. He added that the market is currently data-driven. "If gold breaks the $3,275$3,270 resistance zone, we could see a move towards $3,300 and above. However, a drop below $3,220$3,200 could pull the price down to $3,180," Agar said, adding that future movement depends on upcoming economic indicators. Meanwhile, the Pakistani rupee posted a slight decline against the US dollar in the inter-bank market on Tuesday, depreciating by 0.04%. At the close of trading, the rupee settled at 281.67, down by 10 paisa from Monday's closing rate of 281.57. Globally, the US dollar maintained its upward momentum, buoyed by investor optimism following a trade agreement between the United States and China.
Express Tribune
12-05-2025
- Business
- Express Tribune
Gold plunges following US-China truce
Gold prices in Pakistan maintained a downward trajectory with a massive fall on Monday, mirroring a sharp drop in the international market as risk sentiment crept in following the announcement of a temporary deal between the United States and China to reduce tariffs. In the local bullion market, the price of gold per tola dropped by Rs10,400 to settle at Rs340,500, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). The 10-gram gold rate also declined by Rs8,917, closing at Rs291,923. The downtrend followed a similar fall on Friday when the price per tola had dipped by Rs1,800, ending the week at Rs350,900. Before this, the yellow metal nosedived Rs1,170/tola on April 23, 2025. Globally, the safe-haven asset fell more than 2% on Monday as risk sentiment crept in following the announcement of a temporary deal between the United States and China to reduce tariffs, according to Reuters. Spot gold was down 2.6% at $3,237.04 an ounce. Bullion, considered a hedge against economic and geopolitical turmoil, hit a record high of $3,500.05 last month amid increased tariff uncertainty. US gold futures shed 3.1% to $3,241.70. Adnan Agar, Director at Interactive Commodities, attributed the decline to improved trade sentiment between the US and China. "Gold opened lower today, marking a low of $3,207 before stabilising around $3,236. This drop is largely due to progress in US-China negotiations, where both sides agreed to suspend 90% of tariffs for a 90-day period," he said. Agar added that gold faced key support levels at $3,200 and $3,180. "If prices fall below $3,180, we could see further downside. For now, the market remains weak and volatile as investors await further cues from ongoing talks," he noted. Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar on Monday, appreciating by 0.05% in the inter-bank market. According to the State Bank of Pakistan (SBP), the rupee closed at 281.57 against the greenback, strengthening by Rs0.14 compared to the previous session. Last week, however, the local currency had weakened by Rs0.65 or 0.23% to close at Rs281.71, down from Rs281.06 a week earlier. Moreover, as of March 2025, Pakistan's central government debt rose to Rs73.7 trillion, marking a 0.9% increase month-on-month (Rs652 billion) and a 12.7% rise year-on-year. The domestic portion of the debt stood at Rs51.5 trillion, up 18.6% YoY, driven largely by long-term borrowings, particularly federal government bonds which surged 28.8% YoY to Rs39.7 trillion, according to AHL. Permanent debt rose to Rs40.6 trillion, while short-term debt declined by 2.3% to Rs7.8 trillion. Unfunded debt also saw a slight decrease and investments in Naya Pakistan Certificates dropped sharply by 33.2% YoY. Meanwhile, external debt increased marginally to Rs22.2 trillion, up 1% YoY.
