Gold prices fell in Pakistan on Thursday, according to data compiled by FXStreet.
The price for 24-carat Gold stood at 17,850.92 Pakistani Rupees (PKR) per gram, down PKR 41.89 compared with the PKR 17,892.82 it cost on Wednesday.
The price for 24-carat Gold decreased to PKR 208,209.65 per tola from PKR 208,698.30 per tola.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 17,850.92 |
| 10 Grams | 178,509.22 |
| Tola | 208,209.65 |
| Troy Ounce | 555,226.14 |
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 intraday direction amid mixed fundamental cues
- The stronger US consumer inflation figures prompted investors to lower bets for early rate cuts by the Federal Reserve and underpin the US Dollar, capping the upside for the non-yielding Gold price.
- Fed funds futures have priced out a rate cut in March and see a nearly 80% chance of easing at the June meeting, and about three 25 basis points rate cuts by the end of this year as against five two weeks ago.
- The US Treasury bond yields retreat further on the back of overnight comments by Chicago Fed President Austan Goolsbee, saying that the central bank should be wary of waiting too long before it cuts rates.
- Goolsbee indicated that the Fed’s trajectory back towards achieving its 2% inflation target would still be on track even if price increases in the US run a bit hotter-than-expected over the next few months.
- This keeps a lid on the Greenback, which, along with the risk of a further escalation of geopolitical tensions in the Middle East, lends some support to the safe-haven XAU/USD and helps limit the downside.
- The Israeli military said on Wednesday its fighter jets began a series of strikes in Lebanon in retaliation to a rocket fired into Northern Israel, raising the risk of a war between the two countries.
- Meanwhile, negotiations for a ceasefire between Israel and Hamas in Gaza have resumed as the former faces international pressure to stop its bombardment of the southern Gaza city of Rafah.
- The US Retail Sales figures for January are due for release later during the North American session, with consensus estimates pointing to a 0.1% fall as compared to a flat reading last month.
- Thursday’s US economic docket also features the Empire State Manufacturing Index, the Philly Fed Manufacturing Index, the usual Weekly Initial Jobless Claims and Industrial Production data.
(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-202402150529