KARACHI:
Gold prices continued their upward trajectory in both domestic and international markets, with the price per tola reaching Rs319,000 in Pakistan on Wednesday after a Rs1,650 increase. Similarly, the price of 10-gram gold climbed to Rs273,491, marking an increase of Rs1,415, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). A day earlier, the per tola price had risen by Rs2,550, setting a then-record high of Rs317,350.
Globally, gold prices also surged, with APGJSA reporting an international rate of $3,038 per ounce (including a $20 premium), reflecting a $16 increase during the day. The precious metal remained above the critical $3,000/oz mark, hovering near the previous session’s record high, as geopolitical tensions in the Middle East and economic uncertainties fuelled its demand. Investors were also closely monitoring the Federal Reserve’s decision later in the day, which could further influence market trends.
“The market conditions remain unchanged, with gold reaching a high of $3,045, once again matching its all-time peak,” said Adnan Agar, Director of Interactive Commodities. Currently, gold is trading at $3,027, with a low of $3,022. He noted that the US monetary policy announcement scheduled for 11:00PM Wednesday could lead to further price fluctuations, with a possibility of a minor correction before the market resumes its upward trend.
Agar emphasised that while interest rates are expected to remain unchanged, the Federal Open Market Committee (FOMC) chairman’s press conference will be crucial. It will provide insights into the Federal Reserve’s economic outlook, ongoing trade tensions, inflation trends, and future policy direction. Market movements will depend on key updates from the conference.
Meanwhile, the Pakistani rupee saw a slight appreciation against the US dollar, gaining 0.02% in the interbank market on Wednesday. By the end of the trading session, the currency stood at 280.21, marking an increase of 6 paisa from the previous day’s closing rate of 280.27.
On the global front, the US dollar struggled to recover as investors awaited key interest rate decisions from the Bank of Japan (BOJ) and the Federal Reserve. Additionally, geopolitical tensions escalated as Israeli airstrikes on Gaza resulted in over 400 casualties, while diplomatic efforts between US President Donald Trump and Russian President Vladimir Putin failed to secure a ceasefire in Ukraine.
Moreover, the State Bank of Pakistan (SBP) raised Rs1.3 trillion through recent auctions for Pakistan Investment Bonds (PIBs) and Market Treasury Bills (MTBs). The spread on 10-year PIBs increased by six basis points compared to the last auction, according to Optimus Capital Management. Currently, the reference rate stands at 11.64%.
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