Gold stays unchanged at historic high in Pakistan

KARACHI: Gold prices in Pakistan steadied on Tuesday, holding firm after setting a fresh record in the previous session.

In the local market, the price of gold per tola remained unchanged at Rs370,700, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). The price of 10 grammes also stood still at Rs317,815.

Internationally, bullion held its ground at $3,480 per ounce, including a $20 premium, while silver in Pakistan was flat at Rs4,303.

A day after the surge

The calm followed a hectic Monday, when gold jumped by Rs3,300 to hit an all-time high. The surge reflected global demand for safe havens as investors shifted money away from the US dollar.

At the same time, the rupee managed to hold its own in the inter-bank market. The local currency appreciated 0.08 percent in early trade, climbing to Rs281.53 against the dollar at 10am, compared with Monday’s close of Rs281.75.

Dollar struggles, investors eye gold

The dollar tried to stage a mild recovery in Asian trading after five straight days of decline. The dollar index inched up to 97.709, just a touch above Monday’s lowest point since late July. But traders continued to turn to gold, pushing prices near record levels worldwide.

Much of the pressure on the greenback comes from political noise in Washington. US President Donald Trump’s repeated attacks on the Federal Reserve, including his surprise move to remove Governor Lisa Cook, have unsettled markets.

Investors fear the central bank’s independence is being eroded at a sensitive moment, when the case for cutting interest rates is still debated.

Global markets on watch

Bullion was headed for its sixth consecutive day of gains, trading at $3,482.55 a troy ounce by late Tuesday. Silver, however, slipped 1.2 percent after touching a 14-year high.

The dollar also held at 147.33 yen, continuing the range it has hovered in since early August. Attention now turns to US economic data expected later this week, which could reveal how Trump’s policies are weighing on industry and the job market.

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