PTBP Web Desk
Gold prices in Pakistan remained stable on Tuesday, showing no major movement in the local bullion market. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola stood unchanged at Rs444,900. Similarly, 10 grams of gold were sold for Rs381,430, maintaining the same rate recorded a day earlier after a previous loss of Rs1,200.
The steadiness in domestic gold prices comes after a volatile start to the week. On Monday, the yellow metal had seen a decline of Rs1,400 per tola, closing at Rs444,900. The correction followed several days of fluctuating prices triggered by shifts in international demand and speculation over U.S. monetary policy.
In contrast to the local market stability, international gold prices experienced a minor pullback on Tuesday. As reported by APGJSA, the global price stood at $4,235 per ounce, with a premium of $20 applied. Meanwhile, spot gold slipped by 0.3% to $4,340.29 per ounce at 0248 GMT, after reaching a record high of $4,381.21 per ounce on Monday.
Analysts attributed the dip to profit-taking by investors following the metal’s sharp rally earlier this week. Market participants sought to secure gains amid growing optimism about potential interest rate cuts by the U.S. Federal Reserve.
Gold prices have seen strong upward momentum over the past few months, supported by safe-haven demand and expectations of easing monetary policy. With global inflation pressures subsiding and central banks hinting at policy adjustments, investors have increasingly turned to gold as a hedge against uncertainty.
Experts note that several factors are shaping the current trend in both domestic and global gold prices.
- Monetary Policy Expectations: The likelihood of U.S. Federal Reserve rate cuts remains one of the strongest drivers of global gold movements. Lower interest rates typically weaken the U.S. dollar, making gold more attractive to investors.
- Safe-Haven Appeal: Amid geopolitical tensions, ongoing conflicts, and global market instability, gold continues to be viewed as a secure investment asset. This safe-haven demand has played a vital role in pushing prices toward record highs.
- Currency Fluctuations: In Pakistan, the rupee’s exchange rate against the U.S. dollar directly affects local gold pricing. When the rupee weakens, the domestic price of gold tends to rise, even if international rates remain steady.
- Market Speculation: Short-term profit-taking by traders can create temporary corrections, as seen in the current international market movement.
Alongside gold, silver prices in Pakistan showed little change. According to the APGJSA, silver per tola was traded at Rs5,261. The steady rate indicates balanced demand in the local market.
While gold often dominates market headlines, silver has also seen a gradual increase in global demand, particularly from the industrial and renewable energy sectors. Analysts predict that if gold prices remain elevated, silver may follow a similar trend in the coming months.
Traders and jewellers in major cities like Karachi, Lahore, and Islamabad reported moderate activity in the bullion markets. With prices maintaining stability, many customers preferred to wait for potential corrections before making purchases.
Jewellers noted that consistent prices often provide an opportunity for long-term investors to enter the market. However, retail buyers typically show greater interest when prices decline slightly.
Market experts suggest that if international prices continue to hover around current levels, Pakistan’s domestic rates are likely to remain stable in the short term. Nonetheless, any sharp movement in the global market or changes in the rupee’s value could quickly alter the outlook.
The recent rally in gold prices has been driven largely by macroeconomic uncertainty. As inflation eases across major economies and central banks move closer to reducing borrowing costs, investors are diversifying their portfolios.
Meanwhile, the U.S. dollar index has softened, which usually benefits gold since it becomes cheaper for holders of other currencies. However, profit-taking activities—like those seen on Tuesday—often create minor corrections even in bullish markets.
Economic analysts also highlight the role of China and India, two of the world’s largest gold consumers. Seasonal demand, festival purchases, and central bank acquisitions all play critical roles in determining short-term trends.
