Gold flat as safe-haven demand cools
Gold prices in Pakistan remained largely flat on Wednesday, mirroring global trends where prices eased due to reduced safe-haven demand following signs of de-escalation between Israel and Iran. Investors also remained cautious ahead of upcoming US economic data.
In the domestic market, the price of gold rose slightly by Rs300 to settle at Rs354,665 per tola, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). The price of 10-gram gold increased by Rs258 to Rs304,068.
This marginal recovery comes after a sharp drop on Tuesday, when gold fell by Rs3,800 per tola.
Interactive Commodities Director Adnan Agar noted that international gold prices touched the high of $3,337 an ounce and low of $3,311 on Wednesday, with current levels hovering around $3,323.
"The overall sentiment is weak," he said. Gold is holding support between $3,300 and $3,290, but if it fails to break above $3,340, "we could see further downside". A close below $3,290 might push the market towards $3,200.
He added that with geopolitical tensions easing, particularly on the Israel-Iran front, the near-term outlook for gold appears bearish, though a bounce may be possible after further correction.
Internationally, spot gold was down 0.3% at $3,314.45 per ounce at 0934 am EDT (1334 GMT) after prices hit their lowest in over two weeks in the previous session, according to Reuters. US gold futures fell by 0.2% to $3,328.10.
Meanwhile, the Pakistani rupee recorded a slight gain against the US dollar in the inter-bank market on Wednesday, appreciating by 0.02%. By the end of trading, the local currency closed at 283.72, up by five paisa from Tuesday's close at 283.77.
Govt raises Rs467b via T-bills, bonds
To support its financing needs, the government raised a total of Rs466.67 billion through auctions of Market Treasury Bills (MTBs) and Pakistan Investment Bonds – Floating Rate (PFL) on Wednesday, according to the State Bank of Pakistan (SBP).
In the MTBs auction, the SBP raised Rs322.59 billion across four tenors. The breakdown includes Rs14.02 billion from one-month bills, Rs95.89 billion from three-month bills, Rs64.18 billion from six-month bills and Rs148.50 billion from 12-month bills.
The auction saw competitive and non-competitive bids, with the total realised value slightly lower than the face value due to discount pricing.
For 10-year PFL, the SBP raised Rs144.08 billion, which includes Rs142.80 billion from competitive bids and Rs1.28 billion in accrued interest. The bonds were issued at a cut-off price of Rs95.1982 million, with an additional Rs5.55 billion accepted through non-competitive bids.
The auctions reflect strong market participation, with the MTBs contributing the majority (69%) of the total funds raised, while the PFL accounted for the remaining 31%.
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