Gold prices in Pakistan jump as safe-haven rush fires up global markets

• International bullion markets rise after US tariff concerns.
• Spot gold up 0.9% to $2,919.44 an ounce for second day.
• Silver rallies as per tola prices rise by Rs45 to Rs3,315.

Gold prices in Pakistan jumped for the second day, riding the wave of a global rebound as the yellow metal gained traction on safe-haven demand, according to the latest data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA) on Tuesday.

The per tola (11.7 grammes) rate increased by Rs4,800 to hit Rs306,300, while 10-gramme gold climbed Rs4,115 to settle at Rs262,602. Meanwhile, 22-karat gold hit Rs240,727 per 10 grammes after gaining Rs3,772.

Silver, too, joined the rally, with per tola prices increasing by Rs45 to Rs3,315, while 10-gramme rates edged up by Rs39 to Rs2,842, according to the association.

On the international front, gold prices extended gains on Tuesday, driven by safe-haven buying. Trade conflicts erupted after US President Donald Trump imposed new tariffs on the world's biggest economy's top three trading partners.

Spot gold rose 0.9% to $2,919.44 an ounce by 1154 GMT, up for a second straight session. Bullion has gained 10% so far this year and hit a record high of $2,956.15 on February 24. US gold futures rose about 1% to $2,930.

Trump's new 25% tariffs on imports from Mexico and Canada took effect at 0501 GMT. He also doubled duties on Chinese goods to 20%. China hit back immediately with additional tariffs of 10%-15% on certain US imports from March 10 and a series of new export restrictions for designated US entities.

With the central banks ratcheting up the buying of safe-haven metal in the fourth quarter, the demand for gold, including over-the-counter (OTC) trading rose 1% to a record high of 4,974.5 metric tonnes in 2024 as investment increased.

According to the World Gold Council (WGC), central banks, a major source of gold demand, bought more than 1,000 tonnes of the metal for the third year in a row in 2024.

In the final quarter of 2024, when Trump won the US election, buying by central banks accelerated by 54% year on year to 333 tonnes, the WGC calculated, based on reported purchases and an estimate of unreported buying.

Total gold demand, excluding opaque OTC trading, rose 1% to 4,553.7 tonnes last year, the highest since 2022, the WGC said. It estimates that OTC demand fell 7% due to a slump in the final quarter of the year as profit-taking offset persistent demand from high-net-worth investors.

Gold jewellery consumption, the biggest category of physical demand, fell 11% in 2024, while mine production was steady and recycling rose 15%.

The WGC expects jewellery demand to remain under pressure and recycling to rise further this year due to high prices.