KARACHI:
Gold prices in Pakistan extended their upward march on Tuesday, mirroring a strong rally in the international market, where the precious metal climbed over 1% amid a weaker US dollar and renewed economic uncertainty.
International markets responded to rising investor caution ahead of US President Donald Trump’s July 9 deadline for the possible reinstatement of higher trade tariffs, a move that has injected volatility and boosted demand for safe-haven assets like gold.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold in the local market surged Rs6,600 per tola, settling at Rs356,800. Similarly, the price of 10 grams of gold rose Rs5,658 to Rs305,898.
The previous day, gold had also posted gains, with the price per tola increasing by Rs800 to reach Rs350,200.
Traders attribute the sharp price increase to both global cues and persistent currency depreciation, which continue to drive domestic gold prices upwards.
Interactive Commodities Director Adnan Agar noted that gold prices edged higher amid renewed geopolitical and economic jitters, largely triggered by Trump’s latest remarks on trade tariffs.
“Gold has moved up slightly,” Agar observed, “mainly because Trump resumed his aggressive rhetoric around tariffs. Since yesterday (Monday), prices have increased by around $70 to $80, with the metal trading near $3,350 and having touched the high of $3,357.”
He also pointed to fresh tensions between Trump and Tesla CEO Elon Musk, suggesting that their escalating public spat may be contributing to market unease and further supporting gold’s safe-haven appeal.
“Their ongoing confrontation has added to the uncertainty, which in turn is pushing investors towards gold,” Agar said, linking the rise in bullion to heightened volatility in US political and business circles.
Gold delivered robust gains in the first half of 2025, particularly in US dollar terms, sparked primarily by the weakening of the greenback, according to Ole Hansen, Head of Commodity Strategy at Saxo Bank.
Citing Bloomberg and Saxo data, Hansen noted that while dollar-based investors enjoyed strong returns – 25.9% – those holding other currencies, especially in Europe, saw much lower gains.
Gold priced in Indian rupees topped the chart with a 26% rise, followed by the Chinese yuan (22.8%), Canadian dollar (19.1%) and Australian dollar (18.4%). In contrast, returns in the euro and Swiss franc stood at just 10.5% and 10%, respectively, reflecting how stronger local currencies dampened gold’s performance for un-hedged investors.
This disparity underscores the impact of currency dynamics, policy shifts and inflation expectations on commodity returns.
