Gold prices in Pakistan dropped on Wednesday, echoing the downward trend in international markets driven by reduced demand for safe-haven assets due to easing US-China trade tensions.
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the gold price per tola declined by Rs2,300, settling at Rs341,900. Meanwhile, the 10-gram rate decreased by Rs1,972, reaching Rs293,124.
This dip follows a significant rise on Tuesday, when the price per tola climbed Rs3,700 to Rs344,200.
Global Gold Trends
Internationally, gold prices also fell on Wednesday. APGJSA reported the global price at $3,235 per ounce, down $23 from the previous session, including a $20 premium.
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Spot gold fell by 0.4% to $3,234.32/oz (as of 02:31 GMT)
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US gold futures slipped 0.3% to $3,237.00
Financial analysts linked this trend to reduced geopolitical risk.
“Positive developments in US trade policy are diminishing the appeal of gold in the short term,” said Kyle Rodda, financial market analyst at Capital.com.
“If we see continued progress in trade negotiations, gold could pull back further. $3,200 is a critical support level.”
The US government’s decision to cut the ‘de minimis’ tariff for low-value Chinese imports to 30% has helped ease trade war fears, further reducing gold’s appeal as a hedge.
Silver Prices Hold Steady
Unlike gold, silver prices remained stable in the local market. The price per tola of silver stood firm at Rs3,482, showing no change during the day.
Market Outlook
With global tensions easing and inflation data in focus, gold prices may continue to face downward pressure. Investors are advised to monitor developments in US trade policy and upcoming Federal Reserve decisions for cues.
