Gold prices took a dip today in both international and local markets, reversing the gains seen just a day earlier.
In the global bullion market, gold prices fell by $23 per ounce, bringing the price down to $3,235 per ounce.
Locally, the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reported that this international drop also affected prices within Pakistan.
The cost of one tola of gold (11.66 grams) dropped by Rs2,300, now priced at Rs341,900. Similarly, the price of 10 grams of gold went down by Rs1,972, now standing at Rs293,124.
Just yesterday, the price had climbed by Rs3,700 per tola, reaching Rs344,200 in the local market.
The latest decline comes amid easing tensions between the US and China, which has reduced investor fears of a global economic slowdown.
This shift in sentiment has lessened gold’s appeal as a safe haven, with investors moving towards riskier assets instead.
Spot gold slipped by 0.4%, trading at $3,233.26 an ounce as of 10:10 GMT. Last month, prices had soared to a record $3,500.05, driven by heightened concerns over the trade conflict.
US gold futures also moved down 0.3% to $3,236.70.
Following discussions in Geneva over the weekend, the US and China reached an agreement to pause reciprocal tariffs for 90 days.
According to a White House executive order and industry experts, the US plans to reduce the “de minimus” tariff on low-value shipments from China to 30%.
“After the tariff truce announced over the weekend, we’ve seen stock markets surge higher, and at least in the short term, this has removed some of the safe haven focus that has helped propel gold to record highs in recent months,” said Ole Hansen, head of commodity strategy at Saxo Bank.