Gold prices rose in Pakistan on Monday, according to data compiled by FXStreet.
The price for 24-carat Gold stood at 18,134.78 Pakistani Rupees (PKR) per gram, up PKR 54.70 compared with the PKR 18,080.09 it cost on Friday.
The price for 24-carat Gold increased to PKR 211,520.57 per tola from PKR 210,882.59 per tola.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 18,134.78 |
| 10 Grams | 181,347.85 |
| Tola | 211,520.57 |
| Troy Ounce | 564,055.27 |
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 benefits from subdued USD demand, upside remains capped
- The US Producer Price Index (PPI) rose 0.3% MoM in January from a 0.1% decline in December. The PPI figure rose 0.9% in a year, above the market consensus.
- US Housing Starts fell -14.8% from 1.562M to 1.331M, while Building Permits dropped -1.5% from 1.8% in the previous reading.
- The Michigan Consumer Sentiment Index improved to 79.6 in February from January’s reading of 79.0, missing the market expectation.
- Bets for 25 basis points rate cut in May edged up to 40% and the odds for a move in June stood at 80% following the release of weaker US Retail Sales.
- The Commerce Department reported that Retail Sales declined sharply by 0.8% in January and sales excluding auto contracted by 0.6% last month.
- A separate report showed that import prices posted their biggest gain in nearly two years and jumped by 0.8% in January, the yearly rate fell 1.3%.
- Atlanta Fed President Bostic said on Thursday that the US central bank has made solid progress in lowering inflation and will soon contemplate cutting rates.
- Bostic added that a strong economy argues for patience in adjusting monetary policy and that the Fed does not face urgency to cut interest rates.
- The Israeli military said on Wednesday that its fighter jets began a series of strikes in Lebanon, raising the risk of a wider conflict in the Middle East.
(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-rises-according-to-fxstreet-data-202402190542