Gold price in Pakistan witnessed a significant decline on Wednesday, with 24-karat gold dropping by Rs2,400 per tola. According to the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA), 24-karat gold was sold at Rs306,300 per tola, while 10-gram gold prices fell to Rs262,602. Similarly, 22-karat gold prices also decreased, reaching Rs240,727 per 10-gram. Silver prices followed the trend, with 24-karat silver declining to Rs3,314 per tola.
Globally, spot gold traded near $2,913 an ounce, reflecting a 0.16% drop. Market participants remained cautious as they awaited the U.S. interest rate decision and monitored geopolitical developments. This blog delves into the factors behind the price drop, market trends, and expert insights to help you understand the current gold and silver landscape.
Key Points:
- Gold price in Pakistan fell by Rs2,400 per tola on Wednesday.
- 24-karat gold was sold at Rs306,300 per tola, while 10-gram gold dropped to Rs262,602.
- Silver prices also declined, with 24-karat silver reaching Rs3,314 per tola.
- Global spot gold traded near $2,913 an ounce, down 0.16%.
- Market participants awaited the U.S. interest rate verdict and monitored trade policies.
Detailed Analysis
Market Context
The decline in gold prices in Pakistan aligns with global trends, where spot gold prices dropped by 0.16% to $2,913 an ounce. This movement is largely influenced by the anticipation of the U.S. Federal Reserve’s interest rate decision. Higher interest rates typically strengthen the U.S. dollar, making gold more expensive for international buyers and reducing its appeal.
Additionally, geopolitical tensions and trade policies, particularly those involving former U.S. President Donald Trump, have added uncertainty to the market. Investors often turn to gold during times of instability, but the current wait-and-see approach has led to subdued demand.
Technical Insights
From a technical perspective, gold prices in Pakistan have shown a downward trend over the past month. The price of 24-karat gold decreased by Rs17,200 per tola in February, reflecting broader market volatility. Key support levels for gold remain at Rs300,000 per tola, while resistance is observed near Rs310,000.
Silver prices also faced pressure, with 24-karat silver dropping by Rs36 per tola. The metal’s price movement is often correlated with gold, but it tends to be more volatile due to its industrial applications.
Expert Opinions
Market analysts suggest that the gold price decline is temporary, driven by short-term factors like the U.S. interest rate decision. According to experts at Daily Gold Signal, “Gold remains a safe-haven asset, and any escalation in geopolitical tensions or economic uncertainty could drive prices higher in the coming weeks.”
Conclusion
The recent drop in gold prices in Pakistan reflects both local and global market dynamics. While the U.S. interest rate decision and trade policies have created short-term volatility, gold’s long-term appeal as a safe-haven asset remains intact. Investors should monitor key support and resistance levels, as well as global economic developments, to make informed decisions.
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