Geopolitical tensions send gold to new peak

The potential escalation in the Middle East crisis pulled the rupee down to almost four-week low at Rs279.29 against the US dollar in the inter-bank market on Tuesday and sent gold to a new record high at Rs249,700 per tola (11.66 grams). According to State Bank of Pakistan’s (SBP) data, the rupee further depreciated 0.06%, or Rs0.17, and closed at a 26-day low at Rs279.29 against the greenback. The currency has cumulatively dropped 0.45%, or Rs1.26, in the past three weeks compared to the five-and-a-half-month high of Rs277.03/$ reached in late March 2024. The Middle Eastern crisis has fueled a surge in international crude oil prices, which is gradually piling pressure on the rupee. Talking to The Express Tribune, Ismail Iqbal Securities Deputy Head of Research Saad Hanif said the government revised up petroleum product prices twice in the past three weeks, contending it was passing on the increase in global oil prices to end-consumers.