KARACHI:
As gold prices soared to new heights in Pakistan on Tuesday, following a global surge, investors found themselves in uncertain waters. Experts are now forecasting a significant correction, despite the ongoing record-breaking gains.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold surged by Rs5,900 per tola, reaching a historic high of Rs363,700 in the local market. The price of 10 grams of gold also jumped significantly, climbing Rs5,059 to settle at Rs311,814.
This follows a sharp increase on Monday when gold prices per tola rose by Rs8,100 to hit the then-record high of Rs357,800.
Internationally, gold prices also scaled new heights. APGJSA reported the global rate at $3,454 per ounce on Tuesday — including a $20 premium — marking a daily gain of $59.
Commenting on the development, Adnan Agar, Director at Interactive Commodities, noted that gold touched a peak of $3,500 in the international market before retreating to $3,426. “The market is now $75 below its intraday high, signalling the potential for an even bigger correction,” he said. “If prices dip below $3,400, further downward movement is likely. Otherwise, a rebound could be on the cards. Today’s closing price will be crucial in determining the near-term trend.”
The persistent rally in gold is being closely watched by investors amid global economic uncertainty and currency fluctuations, he said.
Meanwhile, the Pakistani rupee posted a marginal gain against the US dollar in the inter-bank market on Tuesday, appreciating by 0.04%. According to the State Bank of Pakistan, the local currency closed at 280.77, up by 10 paisas compared to Monday’s closing rate of 280.87.
Globally, the US dollar remained under pressure, hovering near multi-year lows as investor confidence weakened amid persistent criticism of the Federal Reserve by President Donald Trump.
The dollar edged close to its lowest level in nearly a decade against the Swiss franc and hovered near a three-and-a-half-year low against the euro.
Trump intensified his attacks on Fed Chair Jerome Powell in a Truth Social post on Monday, branding him a “major loser” and urging an immediate rate cut to avoid a potential economic downturn.
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