Gold prices in Pakistan saw only a slight uptick on Tuesday, even as international markets experienced a stronger rally driven by a weaker US dollar and ongoing global uncertainties, including discussions around US tariffs and ceasefire efforts between Russia and Ukraine.
In the local market, gold rose modestly by Rs300 per tola, reaching Rs342,800, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Meanwhile, the price of 10 grams increased by Rs257, closing at Rs293,895.
This follows a sharp jump on Monday, when gold surged by Rs4,000 per tola to settle at Rs342,500.
Adnan Agar, Director at Interactive Commodities, noted that market activity remained muted throughout the day.
“Today’s range was relatively narrow, with a high of $3,250 and a low of $3,206, while the market opened at $3,234. Currently, prices are hovering around $3,224,” he explained.
He added that $3,200 was proving to be a key support level.
“The market is consolidating within a $50 range. If prices close above $3,250 to $3,280 in the next two to three days, we may see a bullish breakout. However, a close below $3,200 could signal renewed downward pressure.”
Globally, gold gained over 1% on Tuesday, boosted by the declining US dollar. According to Reuters, spot gold was up 1.6% at $3,280.32 per ounce, while US gold futures climbed 1.5% to $3,283.10.
The US dollar extended its losses amid continued caution from the Federal Reserve and after Moody’s downgraded the US sovereign rating last week. A weaker dollar generally makes gold more affordable for those using other currencies.
“There’s still a level of uncertainty out in the market. Most notably, the Moody’s downgrade and the weakening dollar have supported the precious metals complex overall,” said David Meger, Director of Metals Trading at High Ridge Futures.
Meanwhile, in Pakistan, the rupee slipped slightly against the US dollar in the interbank market, dropping by 0.05%. The currency ended the day at 281.92, down from Monday’s 281.77.
Internationally, the dollar remained steady after recent declines, held back by cautious Fed projections and budget concerns in the US, as lawmakers work toward passing legislation expected to further widen the fiscal deficit.