Business

Gold extends downward spiral in Pakistan

Published

2 years ago

Farwa

Gold price declines by Rs700 per tola,
Per tola rate settles at Rs197,300.
Silver price remain unchanged.

Gold extended its downward spiral on Tuesday for the fourth consecutive session as the Pakistan rupee continues to strengthen against the US dollar in both — interbank and open markets — fading the shine of the yellow metal.

The price of gold (24 carats) fell by Rs700 per tola and Rs600 per 10 grams to settle at Rs197,300 and Rs169,153, respectively, according to All-Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The price of yellow metal fell Rs9,200 per tola in four trading sessions which was more than the amount it cumulatively gained Rs5,900, or 3.03% per tola during the week ended March 4.

The price of gold is declining due to the strengthening of the rupee which settled at 277.87 against the US dollar in the interbank market today after a meagre increase of 0.02% compared to Monday’s close of 277.92.

The precious commodity scaled to an all-time high of 210,500 per tola on January 30, 2023; however, the gold price started receding after the rupee recovered on hopes of revival of the $6.5 billion International Monetary Fund (IMF) bailout programme.

It should be noted that Pakistan meets almost all its gold demand through imports, and traders follow its international price in setting rates in the country. Jewellers import the metal against the US dollar and UAE dirham before converting its price into rupees.

Meanwhile, silver prices in the domestic market remained unchanged at Rs2,140 per tola and Rs1,834.70 per 10 grams, respectively.

In the international market, the gold prices eased, as investors awaited Federal Reserve Chair Jerome Powell’s testimony later in the day for clues on the future path of US interest rate hikes. The price of per ounce gold settled at $1,842 after a decline of $7.

Prices have eased from a more than two-week peak of $1,858.19 hit on Monday but remained hemmed in a narrow range.

The dollar index gained 0.1%, making bullion less affordable for overseas buyers.

Powell is due to deliver his semi-annual testimony before Congress on Tuesday and Wednesday. The US jobs report for February is due on Friday.

Gold’s quest to extend gains is set to be heavily influenced this week by potential policy clues from Powell’s testimonies and the incoming US payrolls report, said Han Tan, chief market analyst at Exinity.

If Friday’s jobs data shows significant resilience in the US labour market, it would pave the way for even higher US rates and could unwind the month-to-date gains garnered so far by gold, Tan added.

Despite being known as an inflation hedge, higher interest rates dent bullion’s appeal as they increase the opportunity cost of holding a zero-yield asset.

Business

Robust activity lets PSX climb above 115,000 level again.

Published

2 days ago

Farwa

On Friday, the Pakistan Stock Exchange (PSX) resumed its upward trend, crossing 115,000 points once more.

The PSX had strong action in the morning session, as the KSE-100 index increased by 1,000 points to 115,138.

The notoriously volatile PSX closed Thursday at 114,037 points, up 594 points.

DOLLAR DEPRECIES

Meanwhile, in the interbank market this morning, the US dollar fell 7 paisas to Rs278.65 against the Pakistani rupee.

Business

SBP will announce monetary policy on January 27.

Published

2 days ago

Farwa

The State Bank of Pakistan (SBP) will release its monetary policy on Monday.

The Monetary Policy Committee (MPC) of the SBP will convene on the first day of the following week to make decisions on monetary policy.

The Monetary Policy decision will be announced by Governor SBP Jameel Ahmad at a news conference on the same day after the MPC meeting, according to an official release.

In December, the central bank reduced policy rates by 200 basis points (bps) to 13 percent.

“In November 2024, headline inflation fell to 4.9 percent year on year, meeting the MPC’s estimates. This decrease was mostly caused by the ongoing decline in food inflation and the phasing out of the impact of the gas tariff increase in November 2023,” SBP stated in an official release.

“However, the Committee noted that core inflation, at 9.7 percent, is proving to be sticky, while consumer and business inflation expectations remain volatile.” To that end, the Committee restated its previous assessment that inflation may remain volatile in the short term before stabilizing within the target range.

“At the same time, growth prospects have slightly improved, as evidenced by a recent increase in high-frequency indicators of economic activity.” Overall, the Committee concluded that its approach of gradual policy rate decreases is keeping inflationary and external account pressures under control while promoting long-term economic growth.

Business

Finance Minister Meets With World Leaders at World Economic Forum in Davos

Published

3 days ago

Farwa

During his attendance at the World Economic Forum in Davos, Switzerland, Finance Minister Muhammad Aurangzeb has met with officials of organisations and leaders of many nations.
Bangladesh’s Chief Advisor, Muhammad Younas, met with Mohammad Aurangzeb.
On the fringes of the World Economic Forum’s Annual Meeting 2025 Opening Banquet, there was an informal meeting.
Additionally, the Finance Minister met with Anwar Ibrahim, the Prime Minister of Malaysia.
Both leaders discussed economic cooperation and bilateral ties.
Muhammad Aurangzeb also had a meeting with Dp World’s Rizwan Soomro and Yuvraj Narayan.
They talked about how to strengthen Pakistan’s logistics and infrastructure systems to support trade.
“The Pakistani government is committed to advancing joint projects and values partnerships in both business-to-business and business-to-government cooperation,” the finance minister added.