KARACHI: Gold prices dropped significantly in both domestic and international markets on Wednesday, following a record high in the previous session. In Pakistan, the price of gold per tola fell by Rs11,700, settling at Rs352,000, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Similarly, the price for 10 grams of gold declined by Rs10,031 to Rs301,783. This correction comes just a day after gold prices surged to an all-time high of Rs363,700 per tola on Tuesday, marking a single-day increase of Rs5,900.
On the global front, the international gold rate also witnessed a sharp decline. According to APGJSA, the international price of gold stood at $3,338 per ounce (including a $20 premium), down by $116 during the day. Spot gold slipped 0.7% to $3,357.11 an ounce by 0256 GMT, while US gold futures dropped 1.5% to $3,366.80.
The fall in gold prices was triggered by US President Donald Trump's decision to withdraw threats to dismiss Federal Reserve Chair Jerome Powell. Trump also expressed optimism over potential progress in US-China trade negotiations, weakening gold's appeal as a safe-haven asset.
Analysts noted that Trump’s softened stance on Powell and his renewed diplomatic tone regarding China bolstered investor confidence in equities and the dollar, prompting a sell-off in gold. “This caused the sell-off in gold price to hit a kind of very extreme oversold level,” said Kelvin Wong, senior market analyst at OANDA Asia Pacific. Meanwhile, silver prices rose by Rs16 to Rs3,457 per tola in the local market.
