$PAXG and $XAG Here are the main reasons gold and silver prices are decreasing in Pakistan, explained simply ๐
๐ 1. Strengthening of Pakistani Rupee (PKR)
Gold and silver in Pakistan are priced using international rates + USD/PKR. When the rupee strengthens against the dollar, local metal prices fallโeven if global prices stay stable.
๐ 2. Decline in International Gold & Silver Prices
Global prices drop due to:
Strong US dollar
Expectations of higher or prolonged US interest rates
Investors shifting money from safe-haven assets (gold/silver) to equities or bonds
๐ต 3. High Interest Rates
When interest rates remain high (globally and locally), investors prefer fixed-income assets over non-yielding assets like gold and silver, reducing demand.
๐ข๏ธ 4. Lower Inflation Fears
If inflation expectations cool down, the need to hedge with gold and silver decreases, pushing prices lower.
๐ฆ 5. Reduced Local Demand
In Pakistan:
Weak buying from jewelers
Less wedding-season demand
Lower investor interest
All contribute to downward pressure.
In short:
๐ Strong PKR + weak global prices + high interest rates = falling gold & silver prices in Pakistan.
#paxg #xag #pricedecrease