Gold steadies as firmer dollar counters ME tensions
'Prices are seeing some consolidation for now as we await the Fed decision and watch developments in the Middle East conflict,' said Jim Wycoff, senior analyst at Kitco Metals. US President Donald Trump said that he wanted a 'real end' to the nuclear dispute with Iran, and indicated he may send senior American officials to meet with the Islamic Republic as the Israel-Iran air war raged for a fifth day. Elsewhere, the Federal Reserve will announce its policy decision on Wednesday, followed by Chair Jerome Powell's press conference.
The US central bank is widely anticipated to leave its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December. A low interest rate environment and geopolitical uncertainty tend to boost gold's appeal.
Central banks around the world expect their gold holdings as a proportion of their reserves to increase over the next five years, a survey by the World Gold Council showed. Data showed that US retail sales dropped more than expected in May, but consumer spending remained supported by solid wage growth.
Spot silver gained 2.3% to $37.16 per ounce, reaching its highest level since February 2012. Citi in a note said silver could rise to $40 over the next six to 12 months.
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Business Recorder
2 hours ago
- Business Recorder
NA body urged to visit tobacco-growing areas
ISLAMABAD: The tobacco growers' association on Friday urged a parliamentary panel to form a sub-committee on a war footing basis to visit tobacco-growing areas in Khyber Pakhtunkhwa, to personally observe the ongoing exploitation of growers by tobacco companies and to hear the grievances of farmers. A member of the tobacco growers' association, Muhammad Ayaz Tajabad, urged the National Assembly's Standing Committee on Food Security, which met here with MNA Syed Tariq Hussain in the chair, to constitute a sub-committee to visit tobacco purchasing centres in Swabi, Mardan, Charsadda, and other areas to observe the mistreatment meted out to farmers by the tobacco companies. He said this when the committee proceeded with a point of order raised by Asad Qaiser, MNA and former speaker of the National Assembly, concerning the challenges faced by tobacco growers and the urgent need for a comprehensive policy framework to address their issues. The farmers representative said that the farmers who have already suffered heavy losses due to damage caused by rains and hailstorms to their crops should not be left at the mercy of the industry, and their grievances should be heard. 'Tobacco companies have continued exploiting farmers under the guise of downgrading,' he said, adding that tobacco remains one of Pakistan's largest tax-contributing sectors. He said that unfair pricing practices and grading irregularities by tobacco companies have badly affected farmers, adding this practice is benefiting middlemen and pushing farmers into losses, particularly after a season of weather-related crop damage. He claimed that companies are purchasing tobacco below official rates, which is again a major issue for the tobacco growers and needs to address without any further delays and excuses. He also presented a video to the committee, showing farmers standing in long queues under the open sky during rain late at night, waiting for their turn to sell their crops. The Pakistan Tobacco Board (PTB) secretary briefed the committee on actions taken in response to previous recommendations, including the formation of oversight bodies for CESS regulation, corporate social responsibility (CSR) initiatives, and development programmes. However, lawmakers expressed concern over the absence of grower representation on these committees and the lack of progress on key reforms. The PTB also reported that around Rs949 million allocated for research and development remains unused due to the vacant post of director at the board. The committee directed the Ministry of National Food Security and Research (MNFS&R) to expedite the appointment process for all vacant PTB posts to enable implementation of pending development and reform initiatives. In addition, the Federal Board of Revenue (FBR) was asked to provide a detailed report on GST and Federal Excise Duty (FED) collections on tobacco and cigarettes over the past five years. The FBR officials informed the committee that GST would now also be applied to imported cotton, with the new policy taking effect from August 15, 2025. A relevant statutory regulatory order (SRO) would be issued soon, they said. The move aims to create parity between imported and local cotton, helping to stabilise prices and support domestic producers. The committee also decided to take up the issue of rising sugar prices in its next session, stressing the need for a market investigation and measures to provide consumer relief. MNAs Rana Muhammad Hayat Khan, Nadeem Abbas, Waseem Qadir, Musarrat Asif Khawaja, Zulfiqar Ali Behan, Muhammad Ameer Sultan, Nazir Ahmed Bhugio, Syed Abrar Ali Shah, Usman Ali, Abdul Qadir Khan, Syed Ayaz Ali Shah Sheerazi, and senior of MNFS&R also attended the meeting. Copyright Business Recorder, 2025
Express Tribune
3 hours ago
- Express Tribune
SBP pumps Rs13.3tr, raises Rs358b
Listen to article The State Bank of Pakistan (SBP) injected a record Rs13.33 trillion into the financial system on Friday through two major Open Market Operations (OMOs), signalling its continued effort to manage liquidity and stabilise financial markets. The injection was made through both conventional reverse repo purchases and Shariah-compliant Mudarabah-based instruments. Under the conventional OMO, the SBP injected Rs13.05 trillion, comprising Rs904.25 billion for a 7-day tenor at 11.02% and Rs12.15 trillion for a 14-day tenor at 11.01%. Bids were accepted on a pro-rata basis. The high participation, with total bids at Rs13.31 trillion, reflected strong demand from market participants. In the parallel Shariah-compliant OMO, the central bank injected Rs270 billion. This included Rs120 billion for 7 days at 11.15% and Rs150 billion for 14 days at 11.13%. The higher rates on Islamic OMOs indicated continued premium demand for Shariah-compliant liquidity. Additionally, the SBP raised Rs358 billion in the latest Pakistan Investment Bonds (PIB) auction, exceeding the Rs300 billion target. Investor interest remained strong, with total bids reaching Rs1,129 billion. According to AKD Securities, cut-off yields for shorter tenors increased. The 2-year bond yield rose by 24 basis points to 11.09%, the 3-year by 9bps to 11.14%, and the 5-year by 5bps to 11.44%. In contrast, the 10-year paper yield fell by 5bps to 12.15%. The 15-year bond was accepted at a cut-off yield of 12.45%, the first such result disclosed for this tenor. The rise in shorter-term yields reflected market concerns over near-term inflation and tight liquidity. Meanwhile, the decline in longer-term yields suggested investor confidence in long-term economic stability. The aggressive bidding highlighted strong investor appetite for government securities amid a stable interest rate outlook. The Pakistani rupee also appreciated by 0.05% on Friday. It closed at 282.72 against the US dollar, gaining 15 paisa from the previous day's rate of 282.87. In contrast to global trends, gold prices in Pakistan edged lower on Friday. This came despite bullion gaining nearly 2% internationally, driven by weaker US payroll data and renewed trade tensions that increased safe-haven demand. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the gold price per tola dropped by Rs100 to settle at Rs352,900. The price for 10 grams also fell by Rs86, closing at Rs302,555. This modest drop followed Thursday's steeper Rs2,000 per tola decline, reflecting currency movements and local demand pressure. Internationally, spot gold surged 1.8% to $3,350.67 per ounce as of (15:35 GMT), after rising as much as 2% earlier. The metal was up 0.4% for the week. Adnan Agar, Director at Interactive Commodities Gold, said gold touched an intraday low of $3,381 and a high of $3,455, trading near $3,448. He added that weak US data and tariff concerns linked to President Donald Trump drove the $60 spike. He expected bullish momentum to continue into Monday, with resistance near $3,460–$3,470.
Express Tribune
3 hours ago
- Express Tribune
Donors offer $5b for Reko Diq
Pakistan has received an overwhelming response from multinational donors and agencies, which have offered $5 billion in financing to execute the multibillion-dollar Reko Diq copper and gold mining project in Balochistan. Sources told The Express Tribune that the commitments received from foreign donors were more than the funding requirement for the Reko Diq project, which is estimated at $3 billion. They said that the donors included the Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC) and US Exim Bank. Development agencies from Germany and Denmark have also offered financing. According to sources, the financial close of the project is at an advanced stage and Petroleum Minister Ali Pervaiz Malik, backed by the Special Investment Facilitation Council (SIFC), is taking the lead and making aggressive efforts to expedite work, which will pave the way for exploring the entire potential of the mining sector. It is interesting to note that the US Exim Bank has offered no cap on financing and is ready to provide capital, which Pakistan and other partners desperately need. The Ministry of Petroleum recently organised a webinar in association with the US embassy to woo American investors to participate in mining projects in Pakistan. State-owned exploration giant Oil and Gas Development Company (OGDC) is a key partner in the Reko Diq project and efforts are underway to kick off work. It also helped arrange a mineral conference, which attracted financing offers. Pakistan is blessed with abundant mineral resources that hold immense potential for fuelling economic growth and industrial development. The country's vast reserves of minerals, including coal, copper, gold, iron ore, chromite and precious stones, provide a solid foundation for the mining sector to thrive and contribute to economic development. Despite its huge potential, the mineral sector currently contributes around 3.2% to the gross domestic product (GDP), with exports accounting for only 0.1% of the world's total. However, with increasing exploration, foreign investment and infrastructure improvements, the mining industry is poised for significant expansion. Pakistan's mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometres. With 92 known minerals, 52 of which are commercially exploited, Pakistan produces an estimated 68.52 million metric tons of minerals annually. The sector supports over 5,000 operational mines and 50,000 small and medium enterprises (SMEs), providing direct employment to 300,000 workers. Some of the country's most notable mineral reserves include the world's second-largest salt mines, the fifth-largest copper and gold deposits and significant coal reserves. Furthermore, Pakistan holds vast quantities of bauxite, gypsum and precious stones such as ruby, topaz, and emerald, which offer considerable export potential. Globally, mineral resources play a crucial role in economic development. Many developed countries, including China, Italy, Turkiye, Spain and Brazil, have effectively leveraged their mineral wealth to fuel industrial growth, increase employment and enhance per-capita income. Pakistan's mineral sector holds similar promise. With strategic planning and investment, the country can improve trade, generate employment and facilitate infrastructure development, ultimately accelerating economic progress. The local mining sector is increasingly attracting foreign investment, with global firms eyeing the untapped mineral reserves. The Reko Diq copper and gold project, located in the Chagai district of Balochistan, has the world's largest untapped copper reserves and stands as a milestone for Pakistan's mining ambitions. The project, revived by Canada's Barrick Gold, is expected to start producing copper and gold by 2028, with an initial investment of $5.5 billion. According to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake in the project, the reserves are expected to generate $74 billion in free cash flow over the next 37 years. The mine is anticipated to generate $2.8 billion in annual exports, create thousands of jobs and transform the local economy. A planned expansion will increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year, with an additional investment of $3.5 billion. Under an intergovernmental transaction agreement, the federal cabinet has approved the sale of a 15% stake in the Reko Diq project to Saudi Arabia. This underscores the region's potential as a hub for foreign investment in the mining sector. Saudi Arabian mining company Manara Minerals will acquire the 15% stake, potentially involving an investment of $1 billion. Logistics for the Reko Diq mine will be managed through a railway track, which is being built in partnership with Pakistan Railways. Railway tracks will essentially entail moving mining supplies to Karachi and eventually exporting copper concentrate and gold.
