Gold prices in Pakistan experienced a significant drop on Monday, April 14, 2025, following a period of extraordinary increases. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola dropped by Rs1,800, settling at Rs338,800. Similarly, the price of 10 grams of gold decreased by Rs1,543, reaching Rs290,466. This price drop followed a record high of Rs340,600 per tola on Saturday, when gold reached unprecedented levels amid rising inflation and ongoing global uncertainties.
Internationally, gold prices also softened on the same day. The global rate stood at $3,218 per ounce on Monday, marking a slight decline of $18 compared to the previous day. Adnan Agar, Director at Interactive Commodities, pointed out that gold seems to be entering a corrective phase after an exceptional rally. He explained that gold had surged nearly 10% within just four to five days, without any significant pullback. As a result, the price of gold could face further declines if it breaches the $3,190 level. Analysts predict that it might test lower support zones around $3,150 and potentially even $3,100, depending on how the market reacts in the coming weeks.
The recent softening in gold prices can be attributed to multiple factors. One of the key drivers is the fluctuating value of the U.S. dollar. On Monday, the U.S. dollar edged lower, despite briefly rebounding from a three-year low. This rebound, however, was short-lived and faded amid growing investor unease. The concern stems from recent statements made by U.S. President Donald Trump, which continued to weigh heavily on market sentiment. His comments regarding tariffs and other economic policies contributed to the heightened volatility in global financial markets, affecting the value of the U.S. dollar and in turn, the price of gold.
Another significant factor contributing to the decline in gold prices is the anticipated slowdown in market activity. The upcoming Good Friday holiday and the Easter weekend are expected to slow down trading volumes across international markets. Many major markets will be closed for the holiday, leading to reduced investor activity and a potential halt in price movements. As a result, market experts expect that price fluctuations will be subdued until Tuesday, when trading volumes may start to normalize as market participants return from the long weekend.
Despite the recent decline in gold prices, many analysts suggest that this could be a temporary setback rather than a long-term trend. The global economic environment remains uncertain, and many experts believe that gold will continue to play a significant role as a safe haven for investors. Central banks around the world have been increasing their gold holdings in response to ongoing geopolitical tensions and economic instability. Furthermore, the possibility of interest rate cuts by the U.S. Federal Reserve, in response to fears of an economic slowdown, could support demand for gold as an alternative investment.
John Meyer, an analyst at SP Angel, highlighted that it is not uncommon for gold to experience dips during periods of market corrections. Historically, however, gold has rebounded quickly after such corrections, and many experts remain optimistic about its long-term prospects. Central bank buying, ongoing geopolitical risks, and the potential for further economic uncertainty are all expected to continue driving demand for gold in the coming months.
In fact, analysts from major financial institutions such as Bank of America Securities and Goldman Sachs have projected a positive outlook for gold prices. Bank of America analysts believe that the ongoing demand from central banks, combined with geopolitical tensions and expectations of further interest rate cuts, will continue to support gold prices. Meanwhile, Goldman Sachs has set a price target of $3,300 per ounce for gold by the end of 2025, citing the potential for further growth driven by the macroeconomic environment.
Additionally, the Federal Reserve’s approach to monetary policy will play a crucial role in shaping the future of gold prices. As the global economy faces ongoing challenges, including trade wars, inflation concerns, and political instability, the Fed’s policies will continue to influence investor sentiment and demand for safe-haven assets such as gold. If the Fed cuts interest rates to stimulate economic growth, it could lead to a rise in gold prices as investors seek alternatives to traditional assets like bonds and equities.
In summary, while gold prices have softened in the short term following a period of significant increases, the long-term outlook for gold remains positive. Investors should monitor global economic indicators, central bank policies, and geopolitical developments to make informed decisions about their investments in gold. The current market conditions offer both challenges and opportunities, and careful analysis will be key to navigating this dynamic environment. Gold’s role as a safe haven during times of uncertainty continues to be one of its most important characteristics, and with ongoing global tensions, it is likely that demand for the precious metal will remain strong.
Investors looking to hedge against potential market volatility or economic downturns may find gold to be a valuable addition to their portfolios. While the recent decline in prices may cause some short-term hesitation, gold’s resilience in the face of uncertainty makes it a solid investment for those seeking stability in an unpredictable financial landscape. With central bank purchases, global inflation concerns, and geopolitical risks, gold is expected to continue playing a key role in global financial markets for the foreseeable future.
As market conditions evolve, gold may once again become a crucial asset for investors looking to protect their wealth and navigate uncertain economic times.
Finance Data:
The SPDR Gold Shares ETF (GLD) is a popular fund tracking the price of gold in the U.S. market. Currently, the price stands at 296.23 USD, with a slight decline of -1.68 USD (-0.00564%) from the previous close. The intraday high for the fund was 298.0 USD, and the intraday low was 294.48 USD. The latest open price was 295.41 USD. The intraday trading volume was 12,427,590 shares, with the latest trade recorded at 00:19 UTC on Tuesday, April 15.
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