Gold has lost its shine for another day in Pakistan.

The precious metal lost Rs2,500 per tola on Tuesday to close at Rs434,936 and continued the recent downward trend in the local market.

The slide comes as gold prices internationally also fell, with investors keeping a close eye on rising tensions in the Middle East and waiting for fresh clues from the US Federal Reserve on future interest rates.

Traders were unsure where the metal was headed next and spot gold was down to about $4,138 an ounce in the global market.

Market experts say gold is currently trading in a narrow range and is trendless. If the metal closes above the $4,300 mark prices could recover but if not, could trigger further declines, analysts said.

Despite recent weakness, the long-term demand for gold is still strong. China’s central bank has been increasing its gold reserves amid the precious metal’s status as a safe haven asset as uncertainty looms over the world.

Prices of silver also ruled low in Pakistan with the per-tola rate dropping by Rs120.

The recent fall poses an important question for local investors: is it a short-term correction or the start of a larger slide?

With geopolitical tensions running high and the Federal Reserve’s policy decision still in focus, the next few days could be key for the direction of gold prices.

Credit: Independent News Pakistan (INP)