Gold prices have finally dipped both globally and locally, halting the streak of record-breaking highs after several weeks of constant gains.
Gold eased on Thursday to hit its lowest level in two weeks as the dollar’s strength and easing trade tensions dulled the metal’s safe-haven allure.
Spot gold fell 1.8% to $3,228.70 an ounce, after hitting its lowest level since mid-April.
The impact of this global decline was immediately felt in Pakistan’s gold market.
According to the All Pakistan Gems Jewellery Traders and Exporters Association, the price of 24-karat gold plunged by Rs. 3,400 per tola, bringing it down to Rs. 345,800.
Analysts point to a 0.4% rise in the U.S. dollar and a temporary easing of global trade tensions as key reasons behind the decline in investor demand for gold.
U.S. President Donald Trump said he has “potential” trade deals with India, South Korea and Japan as he sought to convert his tariff policy into trade agreements.
Spot silver fell 1.6% to $32.09 an ounce, platinum shed 0.8% to $958.86 and palladium lost 0.2% to $935.88.
For Pakistani consumers, the price drop may offer a brief window to buy gold before any future increase.
However, experts warned that if signs of further economic weakness emerge in the US, the Federal Reserve could lower interest rates, potentially causing gold prices to rise again.
Read more
Gold prices break all previous records, reach all-time high in Pakistan
