Gold price jumps in Pakistan day after sharp decline

KARACHI: Gold prices in Pakistan rebounded sharply on Thursday, with the price of 24-carat gold rising Rs11,200 per tola, reversing most of the previous day’s steep decline as international bullion prices also recovered.

According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-carat gold increased to Rs465,236 per tola, up from Rs454,036 a day earlier.

The price of 10-gram gold also rose by Rs9,602, reaching Rs398,864 compared with Rs389,262 on Wednesday.

The sharp recovery came a day after domestic gold prices had plunged Rs11,300 per tola.

The international market also turned higher on Thursday. Spot gold rose 0.9 per cent to $4,425.83 per ounce, according to Reuters, as a weaker US dollar and declining US Treasury yields provided support to the precious metal.

Gold had fallen to a near one-month low on Wednesday before rebounding by more than 1 per cent as the dollar and Treasury yields retreated from recent highs.

The latest recovery in international bullion prices came as investors shifted their focus towards the US labour market, with the non-farm payrolls report due on Friday. Market expectations around US interest rates have remained a key driver of gold prices.

Gold, which does not pay interest, tends to come under pressure when expectations of higher interest rates push up bond yields and strengthen the US dollar. Conversely, softer yields and a weaker dollar make bullion more attractive to investors.

Sharp reversal in local market

The Thursday increase largely reversed the previous session’s decline.

On Wednesday, the price of 24-carat gold fell Rs11,300 per tola to Rs454,036, while the price of 10 grams dropped Rs9,688 to Rs389,262.

The fall followed another Rs800-per-tola decline on Tuesday, when gold was priced at Rs465,336 per tola.

That meant the metal had lost Rs11,300 over the two sessions through Wednesday before Thursday’s rebound.

The latest move highlights the volatility in Pakistan’s gold market, where local prices are influenced not only by international bullion rates but also by movements in the rupee and domestic market conditions.

International gold was trading above $4,400 an ounce on Thursday, with market participants closely watching US economic data and expectations for the Federal Reserve’s interest-rate policy.

The precious metal has remained sensitive to changing expectations over the US central bank’s next policy moves, particularly as investors assess inflation, employment and economic growth data.

For Pakistani buyers and investors, further movements in international bullion prices and the rupee-dollar exchange rate are likely to remain key factors determining local gold rates in the coming sessions.