Gold prices go up in Pakistan, globally

KARACHI: Gold prices rose on Tuesday in Pakistan after the precious metal was up 0.5 per cent in international market.

The latest surge comes after the correction witnessed on Monday when gold was down 2.6 per cent in international market. Naturally, the local market replicated the trend with the gold prices down Rs10,400 per tola.

However, Tuesday saw gold prices going up by Rs3,700 per tola. It means that the per tola gold prices had jumped to Rs344,200.

PSX continues upward momentum after historic rally

It means the price of 10 grams of gold has reached Rs295,096 after an increase of Rs300,173.

The recovery in the domestic market was reported after gold edged up 0.6 per cent to $3,254 an ounce, having fallen 2 per cent on Monday as investors ditched some safe havens.

WEAKER RUPEE:

On the other hand, the US dollar gained 10 paisas against the rupee on Tuesday, reflecting a weaker demand for gold. That’s why the dollar closed at Rs281.67 in interbank trading.

UNPREDICTABLE TRUMP  

It is Trump’s unpredictable approach to economy, trade and international diplomacy that has fanned concern about the outlook for US growth. Together with a lack of progress in hashing out deals with trade partners, these factors have driven investors out of US assets for weeks, to the benefit of safe-havens like gold, the Japanese yen and Swiss franc.

Trump opting for imposing 145 per cent tariff on imports from China and the resultant response from Beijing had pushed the gold prices to a record high of $3,395.95 per ounce on April 21. This all-time high was briefly surpassed again on April 22, with the gold being propelled to $3,499.88 per ounce.

However, the US and China decided to slash the tariffs after both sides agreed to a 90-day pause during the ongoing talks in Geneva, meaning a reduced appetite for safe-havens like gold.

The trade talks in Switzerland resulted in significant cuts to the tit-for-tat tariffs that had been stacked up since January on both sides.

Hence, the US has lowered the tariffs from 145 per cent to 30 per cent, while China’s retaliatory tariffs on US goods are dropped to 10 per cent from 125 per cent.