Gold price rises by Rs2,900 per tola in Pakistan

KARACHI: Gold prices in Pakistan climbed sharply on Thursday, tracking gains in the international market.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold in local market rose by Rs2,900 per tola, reaching Rs362,200.

The rate for 10 grammes gold increased by Rs2,487 to settle at Rs310,528.

This follows a gain of Rs1,300 per tola a day earlier, when the gold price stood at Rs359,300.

In the international market, gold also saw a notable rise. As per APGJSA, the global price reached $3,395 per ounce, up $29, which includes a $20 premium.

Read more: PSX touches historic high, crosses 146k mark in intraday trade

Silver prices in the local market also edged higher, gaining Rs49 to reach Rs4,059 per tola.

Global gold prices rise amid tariff tensions

Gold prices moved up globally on Thursday as fresh tariffs imposed by US President Donald Trump spurred demand for safe-haven assets.

Spot gold was up 0.4 percent at $3,383.49 per ounce by 0645 GMT, while US gold futures rose 0.6 percent to $3,453.30.

Tim Waterer, chief market analyst at KCM Trade, said the new tariff threats from Trump were pushing investors towards gold as a defensive option. “Gold is moving closer to the psychological $3,400 mark as risk assets remain unsettled due to ongoing trade tensions,” he noted.

The US has now enforced tariff hikes ranging from 10 to 50 percent on imports from several trading partners. Trump also announced a 100 percent tariff on semiconductor imports, with an exemption for companies manufacturing in the US or committed to doing so.

Gold often benefits from such political and economic uncertainty, especially when interest rates are low.

Adding further support to gold, the US dollar weakened following unexpectedly soft jobs data last week. The dollar index hovered near a one-week low, fuelling expectations of a rate cut by the US Federal Reserve.

According to CME Group’s FedWatch Tool, traders are now pricing in a 93 percent chance of a 25-basis-point rate cut in September. Minneapolis Fed President Neel Kashkari also suggested that a cut might be needed soon due to a slowing US economy.

Other precious metals also saw gains. Spot silver rose 0.6 percent to $38.07 per ounce, platinum gained 0.5 percent to $1,340.85, and palladium surged 2.4 percent to $1,158.80.