Gold prices fell in Pakistan on Thursday, according to data compiled by FXStreet.
The price for 24-carat Gold stood at 18,229.08 Pakistani Rupees (PKR) per gram, down PKR 53.07 compared with the PKR 18,282.15 it cost on Wednesday.
The price for 24-carat Gold decreased to PKR 212,620.41 per tola from PKR 213,239.40 per tola.
| Unit measure | Gold Price |
|---|---|
| 1 Gram | 18,229.08 |
| 10 Grams | 182,290.80 |
| Tola | 212,620.41 |
| Troy Ounce | 566,988.19 |
FXStreet calculates Gold prices in Pakistan by adapting international prices (XAU/USD) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Global Market Movers: Gold price lacks firm near-term direction amid Fed rate cut uncertainty
- The recent hawkish remarks by several Federal Reserve officials smashed expectations for early and steep interest rate cuts in 2024, which, in turn, acts as a headwind for the non-yielding Gold price.
- Fed Chair Jerome Powell dashed any remaining hopes for a March rate cut and said on Sunday that the central bank can be “prudent” in deciding when to start easing in the wake of a strong economy.
- Fed Governor Adriana Kugler said on Wednesday that she is pleased with the great progress on inflation and added that she is optimistic that the progress will continue, though the job is not done yet.
- Kugler further added that at some point, cooling inflation and labor markets may make a rate cut appropriate, but if disinflation progress stalls, it may be appropriate to hold the policy rate steady for longer.
- Boston Fed President Susan Collins said that inflation has slowed faster than expected but added that the central bank wants more certainty before it cuts rates and the economy needs to cool a bit further.
- Minneapolis Fed President Neel Kashkari noted that officials would like to see a few more months of inflation data before cutting rates and added that he thinks two to three cuts will be appropriate for 2024.
- The markets, however, are still pricing in five rate cuts over the course of the Fed’s seven remaining meetings this year, which keeps the US Dollar bulls on the defensive and lends support to the XAU/USD.
- The yield on the benchmark 10-year US government bond holds comfortably above the 4.0% market and should help limit any meaningful downside for the Greenback ahead of the US inflation figures next week.
- The prevalent risk-on environment might further contribute to capping the upside for the safe-haven precious metal as traders now look to the US Weekly Initial Jobless Claims for short-term opportunities.
(An automation tool was used in creating this post.)
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Source: https://www.fxstreet.com/news/pakistan-gold-price-today-gold-falls-according-to-fxstreet-data-202402080536