Gold prices in Pakistan saw a slower rise on Tuesday, mirroring a global pullback after a recent surge, as markets turned cautious ahead of a potential call between US President Donald Trump and Chinese President Xi Jinping.
In the local market, the price of gold went up by Rs1,000 per tola to reach Rs354,100, while the rate for 10 grams rose by Rs857 to Rs303,583, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This follows a sharp jump of Rs5,900 per tola the previous day.
On the global front, gold prices dipped over 1% on Tuesday after reaching a near four-week high.
The drop was driven by a stronger US dollar and investor hesitation ahead of the expected Trump-Xi conversation, according to Reuters.
Spot gold slipped 1.1% to $3,340.79 an ounce, and US gold futures were down 0.9% at $3,365.90.
David Meger, director at High Ridge Futures, noted that markets may now enter a slow phase, saying, “We are moving into this period that is well known to be the summer doldrums…”
Tensions are mounting over ongoing US-China trade issues, especially after Trump accused China of not upholding tariff agreements.
Adnan Agar from Interactive Commodities shared that gold peaked at $3,387 and bottomed at $3,333 before settling around $3,350.
“After yesterday’s strong $90 move, some profit-taking emerged today. The price reversed near $3,400, failing to break that level, and fell to $3,333,” he said.
He also pointed out that a close below $3,340–$3,345 could send gold towards $3,300, while a break above $3,400 could push it to $3,420 or even $3,440.
Meanwhile, the Pakistani rupee edged down by 0.05% against the US dollar in the inter-bank market, closing at 282.11 compared to Monday’s 281.97, as per the Exchange Companies Association of Pakistan (ECAP).
Globally, the dollar initially fell to a six-week low over economic concerns in the US but later gained 0.5%, making gold more expensive for buyers using other currencies.