Gold prices in Pakistan surged on Tuesday, recovering sharply from Monday’s steep decline, amid a global wave of bargain-hunting and a softer-than-expected US inflation report.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold rose by Rs3,700 per tola, reaching Rs344,200 in the local market. Likewise, the price of 10 grams of gold climbed Rs3,173, settling at Rs295,096. This comes after a dramatic Rs10,400 drop per tola on Monday, when prices had fallen to Rs340,500.
Global Gold Market Trends
Internationally, spot gold rose 0.3% to $3,243.99 an ounce, recovering from Monday’s low of $3,207.30. Meanwhile, US gold futures increased 0.7% to $3,249.50, fueled by the inflation data and optimism around US-China trade talks.
“We had a big correction in gold on Monday due to news of a deal between the US and China,”
— Bart Melek, Head of Commodity Strategies, TD Securities
Despite the announcement, tariffs remain high—30% on Chinese imports, down from 145%, and 10% on US imports into China, down from 125%. Melek noted that such steep tariffs are still “quite negative for the economy,” keeping investors cautious.
Why Is Gold Still Strong in 2025?
Gold has consistently broken record highs in 2025 due to:
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US President Donald Trump’s tariff policies
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Slowing global economic growth
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Strong central bank gold purchases
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Geopolitical tensions
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Rising demand in gold-backed ETFs
Expert Commentary: Market Technicals
Adnan Agar, Director at Interactive Commodities, highlighted that gold touched a high of $3,265 and a low of $3,215 on the Pakistan Mercantile Exchange during Tuesday’s session. He explained that gold’s rise was initially driven by better-than-expected US inflation data.
“If gold breaks the $3,270–$3,275 resistance zone, we could see it surge towards $3,300 or higher. But a drop below $3,200 could signal a decline towards $3,180,”
— Adnan Agar, Interactive Commodities
According to Agar, gold’s future trajectory will be dictated by key upcoming economic indicators, including inflation figures, central bank policies, and geopolitical developments.
Currency Update: Pakistani Rupee Slightly Weaker
Meanwhile, the Pakistani rupee depreciated slightly against the US dollar in the interbank market. It closed at Rs281.67, down 10 paisa from Monday’s Rs281.57.
Globally, the US dollar gained strength, backed by optimism over the US-China trade negotiations.
