KARACHI:
Gold prices in Pakistan stayed relatively steady on Wednesday, aligning with global trends. Prices eased slightly, reflecting a decrease in safe-haven demand following easing tensions between Israel and Iran. Many investors are also holding back in anticipation of key economic data from the US that could impact market dynamics.
In the local market, gold saw a minor increase of Rs300, bringing the price to Rs354,665 per tola, as reported by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). The cost for 10 grams of gold also rose by Rs258 to reach Rs304,068.
This slight uptick follows a significant drop on Tuesday when gold prices fell by Rs3,800 per tola—a reminder of the market’s volatility. Adnan Agar, Director at Interactive Commodities, pointed out that international gold prices fluctuated, peaking at $3,337 an ounce and dipping to a low of $3,311 on Wednesday. Currently, gold is trading around $3,323.
Agar emphasized the overall weak sentiment in the market, stating that gold is currently holding support between $3,300 and $3,290. However, if gold struggles to break above $3,340, we could see prices decline further. A close below $3,290 might push the market down towards the $3,200 mark.
With geopolitical tensions easing, particularly regarding Israel and Iran, the short-term outlook for gold appears bearish. Still, there’s a possibility of a bounce-back after undergoing further corrections.
Internationally, spot gold was down 0.3% at $3,314.45 per ounce, as of 0934 am EDT (1334 GMT), after hitting its lowest level in over two weeks during the previous session, according to Reuters. US gold futures mirrored this decline, falling by 0.2% to $3,328.10.
On a related note, the Pakistani rupee saw a minor gain against the US dollar in the inter-bank market on Wednesday, appreciating slightly by 0.02%. It closed the day at 283.72, a small increase from Tuesday’s closing rate of 283.77.
Government Raises Rs467 Billion via T-Bills and Bonds
To meet its financing requirements, the government successfully raised a total of Rs466.67 billion through the auction of Market Treasury Bills (MTBs) and Pakistan Investment Bonds – Floating Rate (PFL) on Wednesday, as reported by the State Bank of Pakistan (SBP).
During the MTBs auction, the SBP garnered Rs322.59 billion across four different tenors. The breakdown included Rs14.02 billion from one-month bills, Rs95.89 billion from three-month bills, Rs64.18 billion from six-month bills, and Rs148.50 billion from 12-month bills.
The auction saw a mix of competitive and non-competitive bids, though the total realized value was slightly lower than the face value due to some discount pricing.
For the 10-year PFL, the SBP raised Rs144.08 billion, comprising Rs142.80 billion from competitive bids and Rs1.28 billion in accrued interest. The bonds were issued at a cut-off price of Rs95.1982 million, with an additional Rs5.55 billion accepted through non-competitive bids.
This successful auction reflects significant market participation, with MTBs contributing about 69% of the total funds raised, while the PFL made up the other 31%. The recent activities in the treasury market indicate a robust demand for government instruments, which could help stabilize the financial landscape amidst fluctuating gold prices.
