All Pakistan Saraf Gems and Jewellers Association on Wednesday reported the gold rates rebounded with a hike in both the international and domestic markets.

On Tuesday, the per tola and 10-gram prices of 24-karat gold decreased by Rs7,000 to Rs270,500 and Rs6,000 to Rs231,911 respectively.

According to international media, gold traded just above $2,600 after the precious metal’s November sell-off to seven-week lows found technical support at a major trendline.

Gold takes a breather as markets wait for the release of key inflation data from the US, which could impact the future trajectory of interest rates, a major driver of the non-interest-paying yellow metal. When interest rates fall, it is favorable for Gold as it makes it more attractive to investors compared to other assets, FX Street reported.

The report says whilst the US Federal Reserve (Fed) had been on course to slash interest rates because of declining inflation and concerns about a weakening labor market – and this drove Gold price to record highs – that all changed with the election of Donald Trump to the White House. Trump’s radical protectionism and “free market” economic policies are likely to drive inflation back up, according to experts, keeping interest rates high – a negative for Gold.