Trade war pushes gold over Rs300,000/tola
KARACHI:
Gold prices continued their upward trajectory on Friday, surpassing the historic milestone of Rs300,000 per tola in Pakistan, driven by rising international market rates.
In the local market, the price increased by Rs1,346/tola, reaching Rs300,046 for the first time in history. Similarly, the price of 10-gram gold rose by Rs1,154, settling at Rs257,241, according to figures released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The surge in gold prices has been attributed to heightened safe-haven demand amid ongoing trade war concerns, especially ahead of the key US payrolls report. Commenting on the trend, Adnan Agar, Director at Interactive Commodities, stated, "Gold has reached an all-time high today and is expected to remain strong in the future."
This follows Tuesday's increase of Rs1,900, which took gold to Rs294,300, after Monday's Rs200 rise had already set a record of Rs292,400.
Globally, gold prices rose on Friday and were on track for a sixth consecutive week of gains as escalating trade tensions between the US and China prompted investors to seek refuge in the safe-haven asset. Spot gold gained 0.5% to $2,871.59 per ounce as of 1606 GMT, up more than 2% this week after hitting a record high of $2,886.62 earlier in the session. US gold futures rose 0.7% to $2,897.50.
US President Donald Trump kick-started a trade war this week as he imposed new duties on China, though he granted Mexico and Canada a one-month reprieve. Gold is often used as a safe investment during times of political and financial uncertainty.
The gold market also seems to have been buoyed by continued growth in the People's Bank of China's gold holdings and a new Chinese programme allowing insurance funds to invest in gold, said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.
A labour department report showed the US economy added 143,000 jobs in January, compared with the 170,000 expected by economists. The unemployment rate stood at 4%, compared with expectations of 4.1%.
Wage growth and declining job creation are challenging the Federal Reserve's ability to adjust rates, creating a complex yet potentially advantageous situation, said Bart Melek, Head of Commodity Strategies at TD Securities. A strong economy with full employment and easing inflation should allow the Fed to cut rates, but tariff uncertainties call for caution, Chicago Fed President Austan Goolsbee said.
Meanwhile, the Pakistani rupee saw a slight appreciation against the US dollar in the inter-bank market on Friday, gaining 0.04%. By market close, the currency stood at 279.05 per dollar, marking an increase of 10 paisa, according to data from the State Bank of Pakistan (SBP). The rupee had previously closed at 279.15 on Thursday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Japan's Topix rallies to record high in trade deal afterglow
TOKYO: Japan's Topix index climbed to a record high on Thursday and the Nikkei share average hit a new one-year peak, as stocks rallied for a second straight session after Tokyo struck a long-awaited trade deal with Washington. The Topix advanced as much as 2.1% to reach 2,986.63 for the first time ever. The Nikkei gained as much as 2.2% to 42,065.83, crossing the psychological 42,000 mark for the first time since July of last year. The trade deal announced late on Tuesday by US President Donald Trump reduced a reciprocal rate and autos-specific levies to 15%, from the 25% Washington had threatened previously. Signs that the European Union may soon agree its own tariff agreement with the US also lifted overall market sentiment. The rubber index, which includes tyre makers, jumped 3.3% after advancing 2% a day earlier. The Topix transport equipment index gained just 0.2%, but that followed a nearly 11% surge in the previous session.
Business Recorder
2 hours ago
- Business Recorder
US copper hits record high, expanding premium over the LME benchmark
LONDON: US copper futures hit a record high on Thursday, expanding their premium against the global benchmark with just over a week left until the planned date for the US import tariff on the metal. The most active COMEX copper futures rose 1.2% to $5.888 a lb after hitting a peak of $5.959, while the three-month copper on the London Metal Exchange fell 0.2% to $9,910 a metric ton in official open-outcry trading. The premium of COMEX over LME copper expanded to 31% from 29% on Wednesday. The premium remained below the 50% import tariff planned by President Donald Trump as the market was waiting for confirmation of the August 1 deadline and a list of the copper products to which the levy would apply. 'We are cautious of copper's current upward momentum. Any shift in the Trump's tariff policy – whether there are any exemptions or the rate itself is toned down – could see the COMEX premium falling,' said ING commodities analyst Ewa Manthey. Copper stocks in the COMEX-owned warehouses jumped 163% over the last four months, but inflows to them have been slowing down in recent days. This trend is likely to persist, improving availability of copper outside the US and keeping the global copper prices under pressure, Manthey said. Apart from the approaching August 1 deadline for the US copper import tariffs, the metals market focus is on China-US trade talks due in Sweden next week, US trade talks with other countries, and Washington's ongoing investigation into potential import tariffs for some critical minerals. Among other LME metals, tin was steady at $34,845 a ton in official activity after touching $35,100, for its highest since April 7, earlier in the session. Supporting the metal are low stocks in the LME-registered warehouses and large holdings of tin warrants - title documents conferring ownership. Aluminium lost 0.1% to $2,648 a ton, while zinc fell 0.3% to $2,853. Both hit a four-month high earlier in the session. Lead and nickel eased 0.2% to $2,028 and $15,540, respectively.
Business Recorder
2 hours ago
- Business Recorder
China stocks at 3-1/2-year high on trade optimism
HONG KONG: China and Hong Kong stocks rose on Thursday as rare earth and tourism shares rallied, and signs of easing US-China tensions lifted investor sentiment. The Shanghai Composite index climbed up 0.7% to 3,605.73, the highest close since January 2022. It is now on track to register a fifth week of gain, which would mark its longest winning streak in nearly one and a half years. The blue-chip CSI300 index was also up 0.7%. Leading gains onshore, the rare earth sector surged 5.2% to a fresh three-year high. The tourism sector rose 3.4%, while China tourism group duty free index jumped by the 10% daily trading limit following a launch plan for the Hainan Free Trade Port. In Hong Kong, the Hang Seng Index added 0.5% to 25,667.18, the highest close since November 2021. Chinese stocks have been steadily rising in recent weeks, buoyed by Beijing's efforts to curb excessive competition and overcapacity and signs of improving US-China trade relations. The Shanghai Composite Index has surged nearly 19% from its most recent low in April, nearing the 20% gain used to define a technical bull market. 'Although there hasn't been any unexpected change in the top-down macroeconomic picture, there are still many structural opportunities within the stock market,' analysts at Cinda Securities said in an note. Fresh signs of easing US-China trade tensions also helped lift sentiment. President Donald Trump said on Wednesday that the United States was in the process of completing a trade deal with China. Around the region, MSCI's Asia ex-Japan stock index was up 0.3%, while Japan's Nikkei index gained 1.6%.
