Gold prices continue their unpredictable journey as both local and international markets witnessed a decline today, following a sharp one-day increase. This sudden drop has affected traders and investors alike, raising questions about the ongoing volatility of the precious metal market.
📉 Pakistan Gold Market Sees Price Drop
In the local Pakistani market, the price of 10 grams of gold dipped by Rs1,972, bringing the new rate down to Rs293,124. Similarly, the price of per tola (11.66 grams) of gold fell by Rs2,300, with the latest value at Rs341,900, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
Just a day earlier, the market had recorded a notable spike, with per tola gold climbing Rs3,700 to touch Rs344,200. The sudden reversal has stirred uncertainty among investors and buyers alike.
🌍 Global Gold Prices Take a Hit
The global bullion market also saw a decline, with the international gold price falling by $23 per ounce, settling at $3,235 per ounce. The dip in prices comes after a volatile few weeks where gold surged to a record high of $3,500.05 per ounce last month amid heightened global trade tensions.
On Wednesday, spot gold was down by 0.4% to $3,233.26 an ounce, while US gold futures eased 0.3% to $3,236.70, indicating a loss of momentum in the bullion’s previous upward trend.
💼 What’s Behind the Price Drop?
The current decline in gold prices can be traced to easing tensions between the United States and China, particularly regarding trade issues. Over the weekend, both nations reached a 90-day truce on reciprocal tariffs, calming markets worldwide and boosting investor confidence.
The US also announced plans to adjust its tariff policies, including reducing the “de minimus” threshold for low-value Chinese shipments. This development encouraged movement back into riskier assets like stocks, pulling attention away from gold, traditionally seen as a safe-haven investment during times of uncertainty.
According to Ole Hansen, Head of Commodity Strategy at Saxo Bank:
“After the tariff truce announced over the weekend, we’ve seen stock markets surge higher. This has, at least in the short term, removed some of the safe haven focus that has helped propel gold to record highs in recent months.”
🛍 What This Means for Buyers and Investors
The decline in gold prices offers a potential buying opportunity for consumers and small-scale investors, especially in Pakistan where jewelry and gold-based savings are culturally significant. However, the volatile trend means one must proceed with caution and closely monitor both local and global developments before making purchasing decisions.