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Gold plummets in Pakistan as Geneva moot pledges burst pricing bubble

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2 years ago

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  • Gold price plunges Rs3,300 per tola to settle Rs181,800.
  • Analysts had predicted that gold will see black-swan stumble.
  • Silver prices in domestic market rise Rs30 per tola.

Gold prices pared losses on Tuesday after Pakistan received flood aid pledges worth $11 billion at the one-day International Conference on Climate Resilient Pakistan in Geneva.

The announcement of inflow pledges burst the pricing bubble of the precious metal which had previously taken advantage of the dollar shortage and rupee depreciation.

Data released by All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) showed that the price of gold plunged by Rs3,300 per tola and Rs2,829 per 10 grams to settle at Rs181,800 and Rs155,864.

Analysts had already predicted that the yellow metal will see a black-swan stumble as an inflow of $6-8 billion from multilateral and bilateral creditors will burst the pricing bubble in Pakistan.

Earlier, goldsmiths anticipated gold to touch Rs200,000 per tola due to the rupee devaluation against the US dollar under the current cycle. However, they now believe the price will fall below key level of Rs180,000 per tola.

They also mentioned that a majority of the buyers in the local market comprise gold investors these days. Earlier, they were parking their savings in the US dollar to avoid the impact of rupee devaluation at a time of high inflation.

They mentioned that the investors started moving to the bullion market following the shortfall of the dollar in the open market. In the black market, illegal traders were selling the dollar for Rs250-260 compared to Rs227 in the interbank market.

Meanwhile, silver prices in the domestic market rose Rs30 per tola and Rs25.71 per 10 grams to settle at Rs2,100 and Rs1,800.41.

In the international market, gold prices steadied near an eight-month high scaled in the last session, with cautious traders largely focusing on Federal Reserve Chair Jerome Powell’s upcoming speech for more insight into the US central bank’s rate-hike trajectory. The price settled at Rs1,876 per ounce after a rise of $5.

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In interbank trade, the Pakistani rupee beats the US dollar.

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6 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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1 week ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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The inflation rate in Pakistan dropped to its lowest level.

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1 week ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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