Gold prices bounce back in global and local markets
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An increase in both global and local gold prices was observed following a significant drop a day earlier.
According to reports, the price of gold per ounce increased by $22 in the international bullion market, reaching a new level of $2,763.
Meanwhile, gold per tola surged in the local markets by Rs2,300, reaching Rs 288,700. The price of gold per 10 grams also saw an increase of Rs 1,972, reaching Rs247,513.
Yesterday, the price of gold per ounce
decreased
by $26 in the international market and the price per tola of gold decreased by Rs2,700 in local markets.
Gold prices were steady on Wednesday as market participants were cautious ahead of the US Federal Reserve's interest rate decision due later in the day, while also pondering the implications of President Donald Trump's trade policies.
Spot gold was unchanged at $2,762.89 per ounce as of 0930 GMT. US gold futures added 0.1% to $2,771.50.
"Gold is faced with quite a lot of moving parts just now and hence prices are vacillating ; we saw a short-covering rally on the initial threat of tariffs which took us close to all time highs, which prompted some profit-taking at the top," independent analyst Ross Norman said.
Last week, gold saw a 2.6% rise, closing in on its all-time-high levels recorded in October.
"Now gold has entered a period of range trading while it tries to work out the sum total and effect of the Fed meeting, possible rate cuts, and a possible correction in equity markets on the DeepSeek news," Norman said.
On Monday, a sell off in technology stocks driven by Chinese AI model DeepSeek sparked a rush to liquidate bullion to counter losses.
With the Fed's first policy meeting of the year wrapping up later in the day, investors are laser-focused on any signals on the possible path of interest rates, along with Chair Jerome Powell's speech.
The central bank is widely expected to keep rates steady after 100 basis points of easing last year.
Trump has called for lower interest rates, conflicting with the Fed's design of setting interest rate policy independently.
Elsewhere, Trump still plans to make good on his promise to issue tariffs on Canada and Mexico. His policies are widely seen as inflationary, which could pressure the Fed to keep rates higher to curb price pressures.
Spot silver firmed 0.1% to $30.43 per ounce, platinum gained 0.4% to $945.25 and palladium dropped 0.2% to $953.00.
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