Range-bound gold edges up by Rs500
After remaining stable for two days, gold prices in Pakistan edged higher on Wednesday, tracking gains in international markets. In the local market, the price of gold per tola rose by Rs500 to reach Rs306,500, while the rate for 10 grams increased by Rs429 to Rs262,774, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
On Tuesday, gold prices remained unchanged at Rs306,000 per tola. Internationally, gold prices also saw an uptick, with APGJSA reporting a rate of $2,915 per ounce (including a $20 premium), marking a $5 increase during the day.
"Gold prices in the market were range-bound today," said Adnan Agar, Director at Interactive Commodities, explaining that the day's low and high were $2,906 and $2,927, respectively, with the market currently trading near its peak. He attributed the gold price increase to lower-than-expected inflation data from the US, which could pressure the Federal Reserve to consider interest rate cuts. However, uncertainties remain due to ongoing tariff-related policies under Donald Trump, which could impact the US economy.
Agar further noted that while interest rates are likely to remain stable, if gold closes above the $3,030-$3,035 mark, it could potentially retest previous all-time highs. Conversely, if it fails to close above $3,000, the market may continue fluctuating within the $2,900-$2,930 range, as it has for the past 8-10 days. The upcoming market closing will be a key indicator of future trends.
Meanwhile, the Pakistani rupee remained largely stable against the US dollar, slipping by a marginal 0.01% in the interbank market on Wednesday.
By the end of the trading session, the currency stood at 279.97, reflecting a slight depreciation of 2 paisa against the greenback. A day earlier, the rupee had closed at 279.95.
Moreover, in the Pakistan Investment Bonds (PIB) auction, the State Bank of Pakistan (SBP) raised a total of Rs15.8 billion, significantly below the target of Rs350 billion. The central bank received bids worth Rs476 billion but rejected all bids for the 2-year and 3-year bonds. Meanwhile, the cut-off yield for the 5-year bond remained unchanged, while the 10-year bond saw a slight decline of just 1 basis point.
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