Despite global market hiccup, gold prices in Pakistan rise for third day

Gold prices in Pakistan rose again on Wednesday, defying a wobble in international markets amid US tariff war-led economic uncertainties, data from the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) showed.

The per tola (11.7 grammes) gold price in the local market edged up by Rs700 to settle at Rs307,000, while the 10-gramme rate rose by Rs601 to reach Rs263,203. Meanwhile, 22-karat gold climbed to Rs241,278 per 10 grammes after gaining Rs551.

Silver also followed gold’s upward trend, with per tola prices climbing Rs54 to Rs3,369, while 10-gramme rates edged up Rs46 to Rs2,888, the association’s data showed.

International gold prices ticked lower as concerns over the tariffs announced by US President Donald Trump this week weighed on sentiment, while the focus shifted to Friday's payrolls data for insight into the Federal Reserve's next monetary policy move.

Spot gold was down 0.15% at $2,913.15 per ounce by 1325 GMT. Prices hit a record high of $2,956.15 on February 24 and have gained 11% so far this year. US gold futures rose 0.1% to $2,924.30 per ounce.

With the central banks ratcheting up the buying of safe-haven metal in the fourth quarter, the demand for gold, including over-the-counter (OTC) trading rose 1% to a record high of 4,974.5 metric tonnes in 2024 as investment increased.

According to the World Gold Council (WGC), central banks, a major source of gold demand, bought more than 1,000 tonnes of the metal for the third year in a row in 2024.

In the final quarter of 2024, when Trump won the US election, buying by central banks accelerated by 54% year on year to 333 tonnes, the WGC calculated, based on reported purchases and an estimate of unreported buying.

Total gold demand, excluding opaque OTC trading, rose 1% to 4,553.7 tonnes last year, the highest since 2022, the WGC said. It estimates that OTC demand fell 7% due to a slump in the final quarter of the year as profit-taking offset persistent demand from high-net-worth investors.

Gold jewellery consumption, the biggest category of physical demand, fell 11% in 2024, while mine production was steady and recycling rose 15%.

The WGC expects jewellery demand to remain under pressure and recycling to rise further this year due to high prices.