Karachi – April 23, 2025:
Gold prices in both local and international markets dropped significantly on Wednesday following a rally that had pushed the precious metal to historic highs earlier in the week. The decline came amid renewed optimism over U.S.-China trade negotiations and easing tensions between the White House and the Federal Reserve.
In Pakistan, the price of 24-karat gold per tola fell by Rs11,700, bringing it down to Rs352,000, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). Likewise, the price of 10 grams of gold slipped by Rs10,031, settling at Rs301,783.
This correction comes just a day after domestic gold rates hit a record-breaking Rs363,700 per tola, following a single-day jump of Rs5,900 on Tuesday.
The international market mirrored this downward trend. Global spot gold dropped 0.7% to $3,357.11 an ounce, while U.S. gold futures declined 1.5% to $3,366.80. The international gold rate, according to APGJSA, stood at $3,338 per ounce, including a $20 premium, marking a $116 decline for the day.
The dip in gold prices is largely attributed to comments made by former U.S. President Donald Trump, who reversed his threats to fire Federal Reserve Chair Jerome Powell and signaled renewed interest in pursuing a trade deal with China. These developments dampened gold’s appeal as a safe-haven asset amid geopolitical uncertainty.
“Trump’s pullback from targeting Powell, combined with a softened stance on China, sparked risk-on sentiment in the markets, which led to a sharp selloff in gold,” said Kelvin Wong, senior market analyst for Asia Pacific at OANDA. “The metal hit an extremely oversold level in the short-term, technically speaking.”
Meanwhile, silver prices moved in the opposite direction, increasing by Rs16 to Rs3,457 per tola, showing continued interest in precious metals, albeit selectively.
Market observers suggest the volatility in bullion prices may continue in the coming days, depending on geopolitical developments and monetary policy signals from the Federal Reserve.
