KARACHI:
Gold prices in Pakistan surged to a fresh record high on Monday, tracking gains in the international market, where the yellow metal climbed to a more than four-month peak, hovering just $23 below all-time highs.
The rally was supported by growing bets on a US Federal Reserve rate cut and a weaker dollar, while silver crossed $40 per ounce for the first time since 2011.
In the local market, the price of gold per tola jumped Rs3,300 to an all-time high of Rs370,700, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Similarly, the price of 10 grams rose Rs2,829 to a record Rs317,815.
Globally, gold rose $33 to reach $3,480 per ounce, including a $20 premium, APSGJA data showed. The rally extended Saturday’s gains, when local prices had touched Rs367,400 per tola after an increase of Rs3,600.
Interactive Commodities Director Adnan Agar told The Express Tribune that silver’s rally has further boosted sentiment, noting that the metal has reached a 14-year high. “Gold is also heading close to its all-time high. With the Fed’s rate decision due in mid-September and political uncertainty in the US, markets are already pricing in a 99% chance of rate cut,” he said.
Agar added that while silver has crossed $40, analysts see the potential for the metal to test $50 in the coming year, a level last touched in 2011. “If geopolitical tensions escalate or policy disputes intensify, both gold and silver could see sharp upward moves,” he noted.
Trading remained buoyant despite a US bank holiday, with European and Asian markets keeping gold prices elevated throughout the day.
Meanwhile, the Pakistani rupee extended its upward trend against the US dollar on Monday, inching up 0.01% in the inter-bank market. The local currency closed at 281.75, strengthening two paisa from the previous session. This marked the rupee’s 17th straight day of gains against the greenback.
Last week, the rupee had added 13 paisa, or 0.05%, continuing its winning streak. It settled at 281.77 compared to 281.90 a week earlier, according to data released by the State Bank of Pakistan (SBP).
Overall, the rupee has depreciated 1.14% in the calendar year to date but has gained 0.71% in the current
fiscal year to date, Ismail Iqbal Securities said.
Moreover, the government is set to raise Rs4.825 trillion through the sale of debt securities between September and November 2025 to support its fiscal needs indirectly amid restrictions on direct borrowing from the State Bank of Pakistan (SBP) by the International Monetary Fund (IMF), according to an auction calendar released by the SBP.
The massive Rs4.825 trillion fundraising effort comprises two main components: Rs2.875 trillion is slated to be generated through the sale of short-term Market Treasury Bills (MTBs) across seven auctions, while the remaining Rs1.95 trillion will be raised through longer-term Pakistan Investment Bonds (PIBs).
The PIB portion itself is split between fixed-rate bonds, targeting Rs1.2 trillion across three auctions, and floating-rate bonds, aiming to raise Rs750 billion across seven semi-annual auctions.
