Gold dips in local, global markets after one-day surge — May 14, 2025
Gold prices have declined once again in both global and local markets today, following a one-day surge.
The international bullion market saw the price drop by $23 per ounce, reaching $3,235 per ounce.
According to All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the global dip impacted the local market in Pakistan, where per tola gold (11.66 grams) fell by Rs2,300, bringing the price to Rs341,900.
Similarly, the price of 10 grams of gold dropped by Rs1,972, now standing at Rs293,124.
Meanwhile, yesterday the price of gold rose by Rs3,700 per tola, reaching Rs344,200 in the local market.
Gold prices fell on Wednesday as easing US-China trade tensions soothed fears of a potential global recession, boosting investors' appetite for risk and weighing on bullion's safe-haven appeal.
Spot gold fell 0.4% to $3,233.26 an ounce, as of 1010 GMT. Prices scaled a record high of $3,500.05 last month amid elevated trade war fears.
US gold futures eased 0.3% to $3,236.70.
The US and China agreed to a 90-day suspension of reciprocal tariffs following discussions in Geneva over the weekend, with the US planning to reduce the "de minimus" tariff for low-value shipments from China to 30%, according to a White House executive order and industry experts.
"After the tariff truce announced over the weekend, we've seen stock markets surge higher, and at least in the short term, this has removed some of the safe haven focus that has helped propel gold to record highs in recent months," said Ole Hansen, head of commodity strategy at Saxo Bank.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
a day ago
- Business Recorder
Essential kitchen items' prices stay stable
ISLAMABAD: The prices of essential kitchen items have remained stable during this week against the previous week, revealed a survey carried out by Business Recorder here on Saturday. The survey observed a reduction in chicken prices as it went down from Rs16,400 to Rs15,200 per 40-kg in the wholesale market, which in retail is being sold at Rs410 against Rs440 per kg and chicken meat is available Rs700 per kg. Eggs' price remained stable at to Rs7,300 per carton of 30 dozen which in retail is being sold in the range of Rs260-275 per dozen. Sugar price is stable at Rs8,800 per 50kg bag in the wholesale market, while in retail it is being sold at 190 per kg which reflects an over charging of Rs20 per kg as the government has fixed retail sugar price at Rs170 per kg. Traders especially retailers told this correspondent that sugar millers/stockists are not supplying the commodity to the retailers as per their commitment with the government. The moment stockists start supplying the commodity at the government fixed rates, the retailers will bring down the prices. Wheat flour price remained unchanged as the best quality wheat flour ex-mill per 15kg bag is available at Rs1,100, which in retail is being sold at Rs1,150 per 15kg bag; and normal quality wheat flour per 15kg bag is available at Rs1,000, which in retail is being sold at Rs1,050 per bag. After a significant reduction of Rs1,400 per 15 kg bag in wheat flour price over the past 18 months, the tandoor owners in some parts of the federal capital have reduced the roti, naan and paratha prices as in some parts of the federal capital, roti is available at Rs16 against Rs20, naan at Rs20 against Rs25 and paratha at Rs45 against Rs50; however, Quetta hotels chain has not reduced paratha price and are selling at highest rate of Rs60 per paratha. The bakers instead of reducing the biscuits, bread and confectionery items prices, have increased the prices of bakery items despite over 56 per cent reduction in flour prices over 31 per cent reduction in ghee/cooking oil prices. During the past two years, top quality cooking oil/ghee prices such as Dalda reduced by 25 per cent from Rs3,600 per 5 kg to Rs2,700 and normal ghee prices reduced by 31 per cent from Rs8,800 per carton of 16 packs to Rs6,100. The prices of cooked food items remained stable as a cooked daal/vegetable plate at a normal hotel is available at Rs320, cooked beef plate at Rs550, cooked chicken plate at Rs500, cooked mutton at Rs750 and naan/roti is being sold at Rs25/30. Mutton and beef prices remained stable as normal quality mutton was available at Rs2,200 per kg, normal quality boneless beef at Rs1,400 per kg, and normal beef at Rs1,100 per kg. Various varieties of fishes are available in the range of Rs500 to Rs900 per kg. No changes were witnessed in tea prices, as Lipton Yellow Label is available at Rs2,200 per 900 grams pack and Islamabad Tea is available at Rs1,800 per kg; normal quality turmeric powder is available at Rs650 against Rs600 per kg and normal quality red chili powder at Rs800 per kg. Pulses prices remained stable as maash pulse is available at Rs390 per kg, gram pulse at Rs270 per kg, whole gram pulse at Rs250 per kg, various varieties of bean lentils in the range of Rs400-500 per kg, moong at Rs380 per kg, and masoor at Rs280 per kg. The prices of branded spices such as Shan, National, and others, also remained stable as a pack of 39 grams of spice is available at Rs140. The prices of the various varieties of rice remained stable as the best quality basmati price in wholesale market is available at Rs14,000 per 40kg bag, which in retail is being sold at Rs390 per kg, normal quality Basmati at RS13,000 per 40 kg bag, which in retail is being sold at Rs360 per kg, and broken Basmati at Rs10,000 per 40kg bag, which in retail is being sold at Rs260 per kg. Ghee/cooking oil prices remained stable as B-grade ghee/oil is available at Rs6,300 per carton of 16 packs in the wholesale market, which in retail is being sold at Rs420 against Rs400 per pack of 900 grams, while best quality cooking oil/ghee brands such as Dalda ghee in wholesale market are available at Rs2,750 per 5kg tin which in retail are being sold at Rs2,850 per 5-litre bottle. Prices of packed milk brands, Milk Pak, Olpers and others remained stable at Rs2,350 per carton, while in retail 250ml packed milk is being sold at Rs95 per 250ml. Similarly, litre pack at Rs370 per litre. Fresh milk prices in some parts of the twin cities are being sold at Rs220 per kg while in some parts are still being sold at Rs230 per kg and yoghurt price is stable at Rs250 per kg. No changes were observed in the prices of powder milk such as Nido and Lactogen as 400gram Nido powder milk is available at Rs1,320 and 200gram pack at Rs700 per pack. Bathing soaps' prices remained stable as family-size Safeguard is available at Rs160 per pack while Dettol, Lux, Palmolives and others are available at Rs150 per pack, and detergent prices also remained stable as Ariel Surf, Brite, Express Power and others are available at Rs570 per kg pack. The prices of various brands of cold drinks such as Pepsi, Coke, Miranda and others remained stable as family-size bottle is available at Rs230. Officially the Oil and Gas Regulatory Authority (OGRA) while announcing a reduction of Rs6.47 per kg in liquefied petroleum gas (LPG) price has fixed it at Rs233 against Rs240.53 per kg, while retailers have not reduced the commodity price and still selling 15kg domestic LPG cylinder at Rs4,000 against Rs3,495 OGRA fixed price reflecting an overcharging of Rs505 per cylinder. Moreover, the retailers through decanting are selling the LPG on further escalated rates as they charge Rs300-330 per kg, reflecting an overcharging of Rs67-92 per kg. LPG traders and distributors always blame the marketing companies for higher prices, saying the companies are supplying them the commodity on higher prices as a result retailers are left with no option other than shifting the price to the end consumers. According to LPG traders, the LPG marketing companies and distributors are earning billions of rupees profit by overcharging the consumers, while the OGRA which totally depends on district administration including police have totally ignored the enforcement of official commodity rates. Moreover, LPG distributors and retailers are freely selling LPG by decanting in violation of the laws as a result every other day LPG cylinder blasts are claiming precious lives. Overall vegetable and fruit prices witnessed a mixed trend as potatoes price remained stable at Rs3,400-5,200 per quintal, while in retail potatoes are being sold in the range of Rs65-100 per kg; onion price in wholesale market remained stable at Rs1,500-3,000 per quintal, which retail are being sold in the range of Rs75-100 against government set price of Rs24-42 per kg and tomato prices went up from Rs600 to Rs900 per basket of 15kg, which in retail are being sold in the range of Rs100-300 against set price of Rs63-90 per kg. Ginger price is stable at Rs1,500/1,600 per 5kg in the wholesale market, which in retail is being sold in the range of Rs450-500 per kg, local garlic price went up from Rs750 to Rs900 per 5 kg which in retail is being sold at Rs220 against Rs200 per kg, Quetta garlic price is stable at Rs900 per 5 kg which in retail is being sold at Rs250 per kg and China garlic price is also stable at Rs1,150 per 5kg in the wholesale market which in retail is being sold in the range of Rs250-300 per kg, but venders are selling local garlic in the name of China/Quetta to maximize their profits. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
Housing finance subsidy scheme approved: Steel sector revival plan okayed by ECC
ISLAMABAD: The Economic Coordination Committee of the Cabinet endorsed the report of the Ministry of Commerce for the revival of steel sector and approved a mark-up subsidy and risk-sharing scheme for affordable housing finance. A meeting of the ECC was held on Friday under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb to deliberate on a range of important agenda items concerning industrial growth, environmental policy, skill development, housing finance, and telecommunications. The ECC reviewed and endorsed a report presented by the Ministry of Commerce on industrial competitiveness and export-led growth of the steel sector, in alignment with the National Tariff Policy 2025–30, aimed at reducing production costs and enhancing export competitiveness. Iron and steel industry: MoC proposes massive changes in tariff structure The committee also approved a summary by the Ministry of Commerce for filing an appeal in the Supreme Court of Pakistan against the decision of the Lahore High Court (LHC) regarding the grant of gas/RLNG tariff concessions to M/s Ghani Glass Ltd. The committee found the appeal tenable in light of the fact that concessionary energy tariffs for five export-oriented sectors have already been withdrawn and are no longer available to any sector. According to the report, the total production of the sector was 8.40 MMT MT in FY24 with long products accounting for 60percent, flat products 30 percent, tubes and pipes seven percent, and other products three percent of total iron and steel products. Similarly, per capita use of steel was merely 36kg as compared to the world at 247kg - 6.5 times higher than that of Pakistan. In a major step towards environmental sustainability, the ECC approved Pakistan's Green Taxonomy, as proposed by the Ministry of Climate Change and Environmental Coordination. The chair appreciated the initiative, noting that it was long overdue and would play a vital role in facilitating access to financing for green projects in the country. To support skills development through outcomes-based financing, the ECC approved a government guarantee of Rs1 billion for the issuance of the Pakistan Skill Impact Bond (PSIB), as moved by the Ministry of Federal Education and Professional Training. The committee encouraged the ministry to gradually move towards adopting the Public-Private Partnership model and to explore undertaking similar initiatives using its own balance sheet, thereby, reducing reliance on sovereign guarantees. In the housing sector, the ECC approved a mark-up subsidy and risk-sharing scheme for affordable housing finance, with the objective of expanding access to low-cost housing. The committee also urged the ministry to develop a comprehensive, integrated database of the housing sector in coordination with relevant federal and provincial stakeholders, in order to ensure better targeting and effective implementation of the scheme. The ECC was briefed by the Ministry of Industries and Production on the status of availability and pricing trends in the vegetable ghee and oil market. While noting the ministry's assurance regarding adequate national stock levels, the committee expressed concern over the limited pass-through of declining international prices to domestic consumers. It advised vigilant monitoring to prevent price distortions and potential cartelisation, and emphasised the need for active coordination with the Competition Commission of Pakistan, National Price Monitoring Committee (NPMC), and provincial governments through the Ministry of Industries and Production. The ECC approved a proposal by the Ministry of Information Technology and Telecommunication for the revision of charges for Radio-Based Services (RBS). The committee directed the ministry to ensure periodic revision of RBS charges every three to five years, aligned with ongoing economic changes and technological advancements in the sector. The committee also endorsed a revised composition of the advisory committee overseeing the release of IMT spectrum, which is critical for improving next-generation mobile broadband services in Pakistan. In conclusion, the ECC approved the formal declaration of ship breaking and recycling as a recognised industry, as recommended by the Ministry of Maritime Affairs. However, the committee instructed the ministry to coordinate with the Power Division and share relevant data on power consumption patterns in the sector, to enable accurate assessment of the implications of applying industrial power tariffs in place of the existing commercial rates. The meeting was attended by Federal Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Ali Pervaiz Malik, Minister for Commerce Jam Kamal Khan, along with senior officials from relevant ministries, divisions, departments, and authorities. Copyright Business Recorder, 2025
Express Tribune
2 days ago
- Express Tribune
ECC okays Rs72b housing subsidy
Listen to article The government on Friday approved a Rs72 billion subsidy scheme to help low and middle-income groups build small homes and apartments. Beneficiaries can avail housing loans of up to Rs3.5 million at fixed interest rates ranging from 5% to 8%. The Economic Coordination Committee (ECC) of the Cabinet approved the markup subsidy and risk-sharing scheme. First-time homeowners will receive loans at rates cheaper than those offered in the market. The government will bear Rs62 billion in interest costs and Rs10 billion to share the default risk with banks. Finance Minister Muhammad Aurangzeb chaired the ECC meeting, which also cleared a series of agenda items concerning industrial growth, environmental policy, skill development, housing finance, and telecommunication. To ensure the scheme's success and reduce banks' reluctance, the government will enact two key laws. The foreclosure law will soon be tabled in the cabinet, granting banks the right to seize mortgaged properties and the Condominium law will address ownership issues in apartments. The Housing and Works Ministry presented the scheme based on recommendations from the task force on housing development. Under the plan, banks will carry 90% of the risk, while the federal government will assume the remaining 10%. Officials estimate that around 50,000 people will benefit during the current fiscal year, requiring Rs100 billion in loans. The Pakistan Tehreek-e-Insaf (PTI) government had earlier launched a similar scheme. It benefited 184,000 homeowners, with 62,000 units already completed. The rest are under construction. Under PTI's Naya Pakistan Housing Programme, around two million people applied for home loans, but banks only extended Rs236 billion in credit. Housing remains out of reach for most Pakistanis due to double-digit interest rates, even though inflation is around 4.5%. The Economic Policy and Business Development think tank has demanded slashing rates to 6% and ending guaranteed bank profits. To qualify, applicants must be first-time homeowners with valid identity cards and no property ownership. They can avail loans for up to 20 years. The scheme offers fixed rates of 5% for loans up to Rs2 million and 8% for loans between Rs2 million and Rs3.5 million for the first 10 years. After a decade, market rates will apply, which could reach as high as 15% based on current interest trends. The scheme supports the purchase or construction of homes up to 5 marlas or apartments up to 1,360 sq ft. Borrowers must contribute 10% of the cost upfront; the remaining 90% will be financed by banks. Commercial banks, Islamic banks, microfinance banks (MFBs), and the Housing Building Finance Corporation can participate. The State Bank of Pakistan (SBP) has endorsed the scheme's design for ensuring outreach and adherence to criteria. A full implementation mechanism for the markup subsidy and risk-sharing has also been prepared. The Pakistan Housing Authority Foundation will manage the programme. The government has decided to dissolve the Naya Pakistan Housing Authority to avoid duplication. Other decisions The ECC endorsed a report from the Ministry of Commerce on industrial competitiveness and the export-led growth of the steel sector, aligned with the National Tariff Policy 202530. The goal is to lower production costs and improve export competitiveness. The Committee approved a summary from the commerce ministry to file a Supreme Court appeal against a Lahore High Court decision granting gas/RLNG tariff concessions to M/s Ghani Glass Ltd. The ECC found the appeal tenable, given that concessionary tariffs for five export sectors have already been withdrawn. The ECC also approved Pakistan's Green Taxonomy, a proposal by the Ministry of Climate Change and Economic Coordination. The finance minister welcomed the initiative, calling it overdue and vital for enabling green project financing. To support skills development, the ECC approved a Rs1 billion government guarantee for issuing the Pakistan Skill Impact Bond (PSIB). This was moved by the Ministry of Federal Education and Professional Training. The committee encouraged the ministry to gradually adopt the public-private partnership model and finance future projects using its own balance sheet, thereby reducing dependence on sovereign guarantees. The Ministry of Industries and Production briefed the ECC on vegetable ghee and oil pricing trends. Despite adequate national stocks, the Committee expressed concern over weak transmission of limited pass-through of declining international prices to domestic consumers. It urged close monitoring to avoid price distortions or cartelisation. The ECC emphasised stronger coordination with the Competition Commission of Pakistan, National Price Monitoring Committee (NPMC), and provincial authorities through the Ministry of Industires and Production. The ECC approved a proposal by the Ministry of Information Technology and Telecommunication to revise charges for Radio-Based Services (RBS). It directed periodic revisions every 3-5 years to reflect economic and technological shifts. The Committee also endorsed a revised composition of the advisory panel overseeing the release of IMT spectrum, crucial for expanding mobile broadband in Pakistan. Finally, the ECC formally declared ship breaking and recycling as an industry, based on recommendations by the Ministry of Maritime Affairs. However, the ministry was asked to work with the Power Division to provide data on energy usage in the sector to enable accurate assessment of the implications of applying industrial power tariffs in place of the existing commercial rates.
