Gold regained upward momentum on Tuesday in both local and international markets, with prices in Pakistan soaring by Rs24,000 per tola after a decline the previous day.
According to the All Pakistan Sarafa Gems and Jewellers Association, today’s rate witnessed a surge of Rs24,000 per tola on 24-karat gold, leading to Rs514,362, while the price of 10 grams of 24-karat gold soared by Rs20,576 to Rs440,982.
Similarly, the price of 10 grams of 22-karat gold increased by Rs18,862 to Rs404,248.
Whereas silver prices also registered an increase, with 24-karat silver per tola going up by Rs741 to stand at Rs9,146, and 10 grams of silver increasing by Rs636 to Rs7,841.
The increase was noticed after gold prices surged up to $240 to $4,916 per ounce, while silver increased by $7.41 to $86.71 per ounce, the association said.
Spot gold climbed 5.8% to $4,935.56 an ounce by 0818 GMT. On Monday, it hit a low of $4,403.24, two sessions after peaking at $5,594.82.
US gold futures GCcv1 for April delivery rose 6.6% to $4,958.50 per ounce.
“It’s a reasonable call that this is somewhere around fair value potentially, if you consider that we saw a market behaving fairly irrationally for a few weeks there,” said Kyle Rodda, a senior market analyst at Capital.com.
“The current prices take gold and silver back to where they were, early in the second half of January.”
Gold’s spectacular rally saw it smash multiple peaks and log a nearly 13% gain in January, its biggest monthly gain since November 2009, while silver touched an all-time high of $121.64 last Thursday.
Silver gained 10% to $87.40 an ounce on Tuesday, after suffering its biggest one-day loss on record on Friday with a 27% slump. It fell by another 6% on Monday.
The metals had slumped after US President Donald Trump nominated Kevin Warsh to be the next US Federal Reserve chair.
“The markets endorsed Warsh’s nomination by US President Donald Trump as someone relatively credible, and so we saw the dollar move on that basis, and again, that was kind of like the pin that popped the big precious metals,” Rodda said.
CME Group also raised margin requirements on precious metal futures, fuelling last week’s sharp.
The US Bureau of Labour Statistics said on Monday the closely-watched employment report for January would not be released this Friday because of a partial shutdown of the federal government.
In other metals, spot platinum climbed 5.7% to $2,242.55 per ounce after hitting a record high of $2,918.80 on January 26, while palladium was up 5.3% at $1,811.39.
