Domestic Prices Up Slightly by Rs300; Rupee Dips Marginally to 281.92/$
KARACHI: Gold prices in Pakistan saw a modest increase on Tuesday, mirroring a broader global uptrend driven by a weakening US dollar and lingering uncertainties surrounding US trade policies and ceasefire negotiations between Russia and Ukraine.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold in the local market rose by Rs300 per tola, bringing the rate to Rs342,800. The price of 10 grams of gold climbed by Rs257, settling at Rs293,895.
This marginal uptick followed a significant jump of Rs4,000 per tola on Monday, when prices had closed at Rs342,500.
Despite the upward movement, trading activity remained muted. Adnan Agar, Director at Interactive Commodities, commented that the session was largely range-bound, noting:
“Gold prices fluctuated within a narrow band today, with highs of $3,250 and lows of $3,206. The market opened at $3,234 and is currently around $3,224.”
He added that the $3,200 level is acting as a critical support, and suggested a breakout could occur if prices close above $3,250–$3,280 in the next few days. Conversely, a close below $3,200 could trigger fresh selling pressure.
On the international front, spot gold rose 1.6% to $3,280.32 an ounce by 10:49 ET (14:49 GMT), while US gold futures were up 1.5% at $3,283.10, according to Reuters. The rise in global gold prices was attributed to a weakening US dollar, further strained by market concerns following the recent downgrade of the US sovereign credit rating by Moody’s.
A softer dollar typically boosts gold demand by making it more affordable for investors using other currencies.
David Meger, Director of Metals Trading at High Ridge Futures, noted,
“Uncertainty continues to dominate the markets. The dollar’s decline, especially after the Moody’s downgrade, has supported overall interest in precious metals.”
Meanwhile, the Pakistani rupee slipped slightly in the interbank market, depreciating by 15 paisa or 0.05%, closing at 281.92 against the US dollar, compared to Monday’s 281.77.
Internationally, the dollar remained largely range-bound, weighed down by the Federal Reserve’s cautious economic stance and ongoing legislative efforts in the US that are expected to widen the fiscal deficit further.
