- Price of per tola gold increases by Rs1,500 to Rs301,500.
- Yellow metal’s 10-gramme rate up Rs1,286 to Rs258,487.
- Silver gains Rs30 to reach Rs3,270/tola, as per APGJSA.
Snapping a nearly weeklong losing streak, gold prices in Pakistan picked up on Monday as the safe haven commodity bounced back in international markets on a weak dollar, as per the data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of per tola (11.7 grammes) of gold increased by Rs1,500 to Rs301,500, while 10-gramme rates edged up by Rs1,286 to Rs258,487. Silver prices ticked up by Rs30 to reach Rs3,270 per tola and Rs26 to settle at Rs2,803 per 10 grammes, according to the association of dealers.
Bullion in the global markets gained on Monday, following a more than three-week low in the previous session, drawing support from a tame dollar and renewed buying triggered by concerns over US President Donald Trump’s tariff policies.
Spot gold gained 0.5% to $2,873.93 an ounce by 1209 GMT. US gold futures rose 1.3% to $2,885.
The dollar index dropped by 0.6% from a more than two-week high in the previous session, reflecting weakness that makes dollar-priced gold less expensive for buyers holding other currencies.
“Gold’s downside remains limited, given the apparent demand for safe havens amid rising geopolitical and economic growth uncertainties,” said Han Tan, Exinity Group’s chief market analyst.
Trump last week threatened China with an extra 10% duty, set to take effect on Tuesday, resulting in a cumulative 20% tariff.
Despite being widely viewed as a hedge against geopolitical uncertainty, non-yielding gold becomes less attractive to investors when interest rates rise.
Gold fell more than 1% in the previous session, retreating from record highs breached on multiple occasions this year, after US inflation data suggested that the Federal Reserve could adopt a cautious stance on cutting interest rates this year.
With the central banks ratcheting up the buying of safe-haven metal in the fourth quarter, the demand for gold, including over-the-counter (OTC) trading rose 1% to a record high of 4,974.5 metric tonnes in 2024 as investment increased.
According to the World Gold Council (WGC), central banks, a major source of gold demand, bought more than 1,000 tonnes of the metal for the third year in a row in 2024.
In the final quarter of 2024, when Trump won the US election, buying by central banks accelerated by 54% year on year to 333 tonnes, the WGC calculated, based on reported purchases and an estimate of unreported buying.
Total gold demand, excluding opaque OTC trading, rose 1% to 4,553.7 tonnes last year, the highest since 2022, the WGC said. It estimates that OTC demand fell 7% due to a slump in the final quarter of the year as profit-taking offset persistent demand from high-net-worth investors.
Gold jewellery consumption, the biggest category of physical demand, fell 11% in 2024, while mine production was steady and recycling rose 15%.
The WGC expects jewellery demand to remain under pressure and recycling to rise further this year due to high prices.
