Gold Price Drops by Rs700 to Rs348,600 per Tola; Rupee Inches Up to 282.02/$
KARACHI:
On Friday, the State Bank of Pakistan (SBP) carried out a significant liquidity injection, pumping Rs1.148 trillion into the banking system via a combination of conventional and Shariah-compliant open market operations (OMOs). Through its conventional reverse repo facility, the SBP injected Rs970 billion, comprising Rs250 billion for a 6-day tenor at 11.10% and Rs720 billion (partially accepted) for a 14-day tenor at 11.08%.
In parallel, the Shariah-compliant Mudarabah OMO added Rs178 billion to the system, evenly distributed between 6-day and 14-day tenors, both at a rate of 11.10%. This Rs1.15 trillion operation stands as one of the largest single-day liquidity injections so far this year, reflecting the SBP’s active stance to stabilize the interbank market amidst tight liquidity.
On the currency front, the Pakistani rupee made a modest gain against the US dollar in the interbank market, appreciating by 0.02% on Friday. By the session’s close, the rupee had firmed up to 282.02, gaining five paisas compared to Thursday’s 282.07. According to Ismail Iqbal Securities, the rupee has weakened by 1.23% in the calendar year-to-date (CYTD) and by 1.30% in the fiscal year-to-date (FYTD).
Meanwhile, gold prices in Pakistan fell on Friday, mirroring losses in the international market. The decline came as the US dollar strengthened and markets reacted to recent tariff announcements. However, a softer US inflation report has kept hopes alive for a potential interest rate cut.
As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs700 per tola, settling at Rs348,600. The price for 10 grams also declined by Rs599 to Rs298,868.
Adnan Agar, Director at Interactive Commodities, noted that the market remains confined within a range. “Gold peaked at $3,322 and is currently trading around $3,290, with solid support at $3,260,” he said. “Unless the price can surpass the $3,340–$3,350 range, downward pressure is likely to persist,” he added.
