With bullish underlying factors, gold prices in Pakistan climbed on Wednesday, tracking a sharp rise in the international market, where the precious metal gained more than 1% as investors turned to safe-haven assets ahead of crucial US economic data releases.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola rose by Rs7,900 to Rs431,562. The rate for 10 grams increased by Rs6,773, closing at Rs369,994. The increase comes a day after prices fell sharply, with the per-tola rate declining by Rs7,000 to Rs423,662 on Tuesday.

Internationally, gold surged as markets awaited two major triggers – the release of the US Federal Reserve’s meeting minutes scheduled for late Wednesday night and the delayed US employment data expected on Thursday. Both indicators are seen as key determinants of the Fed’s policy direction and could sway investor sentiment significantly.

“Safe haven is undergoing fluctuations these days, but with bullish underlying factors,” said Adnan Agar, Director at Interactive Commodities, noting that gold was moving within critical technical levels and was showing heightened volatility. “Gold is fluctuating. Right now, it has a very ‘strong level’ of around $4,160. If it breaks and closes above that, there is a very high chance gold will head towards a new high,” he said. “If it fails to close above that mark and the market comes down again, it could return towards $4,050 or even $4,000.”

Agar added that the $4,000 mark acts as a strong support zone, both technically and psychologically, given its round-number significance. He also highlighted strong physical demand from China as a major factor preventing a deeper correction in global prices.

“There is a lot of demand for physical gold from China. Chinese investors and the general public are buying and China itself is also accumulating gold. Under normal circumstances, a $400-500 correction should have occurred by now, but strong physical demand has held the market up,” he noted.

The Russian central bank said on Wednesday that its sales and purchases of gold in the domestic market for the budget reserve, the National Wealth Fund, had been increasing in recent years due to the enhanced liquidity of gold, according to Reuters.

The Pakistani rupee marginally strengthened against the US dollar in the inter-bank market on Wednesday, closing at 280.66 after gaining Rs0.01 from Tuesday’s close at 280.67.

The US trade deficit narrowed by about 24 per cent in August as sweeping tariffs imposed by President Donald Trump reduced imports, according to a delayed Commerce Department report released Wednesday. According to Associated Press, citing the report, the trade gap fell to $59.6 billion in August from $78.2 billion in July. Imports declined 5 per cent to $340.4 billion as businesses slowed purchases from abroad after stockpiling goods ahead of tariffs that took effect on August 7. Exports rose 0.1 per cent to $280.8 billion. Trump has upended decades of US free-trade policy by levying broad duties on most trading partners as well as on products such as steel, copper and automobiles. He argues that chronic trade deficits reflect foreign nations exploiting the US. Economists say tariffs are contributing to inflation by raising costs that importers largely pass to consumers. Despite August’s pullback, the trade deficit has widened in 2025, reaching $713.6 billion through August — up 25 per cent from $571.1 billion in the same period last year. A narrower trade gap typically supports economic growth because imports subtract from gross domestic product. “August’s smaller trade deficit will be a tailwind for third-quarter real GDP, since it means more US spending went to domestically-produced goods and services,” said Bill Adams, chief economist at Comerica Bank. The release was delayed due to the government shutdown. Public anger over living costs contributed to Democratic gains in the November 4 elections. Days later, Trump rolled back tariffs on items such as beef, coffee, tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes and some fertilisers, acknowledging their effect on prices. The Supreme Court is weighing the legality of the tariffs. During a November 5 hearing, justices questioned whether a president can impose open-ended duties under emergency powers without approval from Congress.

The Dutch government has suspended its intervention at Nexperia, a Chinese-owned chipmaker based in the Netherlands, following talks with China.

The Hague took action in September over “serious governance shortcomings” and concerns over the European supply of semiconductors for cars and other electronic goods. In response, Beijing blocked exports of the firm’s chips.

However, on Wednesday the Dutch government said it would halt its original decision following “constructive talks” with Beijing.

China said it welcomed the move, adding it was a “first step in the right direction towards a proper resolution”.

Nexperia is a major supplier of basic computer chips to the car industry, and shortages have threatened global supply chains.

A shortage of computer chips used in various electronic goods and cars would hugely impact the ability of manufacturers to make their products.

The decision by the Dutch government will ease tensions between the European Union and China, which have been mounting in recent months over trade and Beijing’s relationship with Russia.

Vincent Karremans, economic affairs minister, said that he considered it right to suspend action, made under the Goods Availability Act, ahead of further talks with the Chinese government.

“We are positive about the measures already taken by the Chinese authorities to ensure the supply of chips to Europe and the rest of the world,” he said in a statement.

The Dutch government said it originally invoked the Act following concerns “from actions attributed to the now-suspended CEO, involving the improper transfer of product assets, funds, technology, and knowledge to a foreign entity”.

“These actions ran counter to the interests of the company, its shareholders, and Dutch and European strategic autonomy and security of supply,” it said.

In October, a Dutch court ordered the removal of ex-Nexperia CEO and Wingtech founder Zhang Xuezheng, citing alleged mismanagement.

The Dutch government added that its decision had aimed to prevent a situation in which chips could become unavailable in an emergency.

In December last year, the US government placed Wingtech, which owns Nexperia, on its so-called “entity list”, identifying the company as a national security concern.

Under the regulations, US companies are barred from exporting American-made goods to businesses on the list unless they have special approval.

In the UK, Nexperia was forced to sell its silicon chip plant in Newport after MPs and ministers expressed national security concerns. It currently owns a UK facility in Stockport.

Following the Dutch government’s reversal, the Beijing acknowledged the move but said it was “still a step away from addressing the root cause of the global semiconductor supply chain turmoil and chaos”.

“Furthermore, the erroneous ruling by the corporate court, spearheaded by the Dutch Ministry of Economic Affairs, to strip Wingtech of its control over Nexperia remains a key obstacle to resolving the issue,” it added.

Wingtech has said it will fight the decision.

Following the latest move, a spokesperson for Wingtch said the company “strongly” rejected the allegations against its chief executive.

“To date, no proof has been provided,” it added. “If the Dutch government is sincere about solving the problem, the Ministry should now file a letter with the Enterprise Chamber, explicitly withdrawing its support for the proceedings.

“These proceedings form a threat to the continuity of Nexperia B.V. and therefore for the economic security of the Netherlands and Europe – which is the exact same argument the Dutch government made previously in support of judicial intervention.”