Gold prices fell in Pakistan on Friday, according to data compiled by FXStreet.
The price for 24-carat Gold stood at 18,238.20 Pakistani Rupees (PKR) per gram, down PKR 21.15 compared with the PKR 18,259.35 it cost on Thursday.
The price for 24-carat Gold decreased to PKR 212,726.83 per tola from PKR 212,973.49 per tola.
| Unit measure | Gold Price |
|---|---|
| 1 Gram | 18,238.20 |
| 10 Grams | 182,382.03 |
| Tola | 212,726.83 |
| Troy Ounce | 567,271.96 |
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, awaits cues about Fed rate cut path
- Robust US macro data and hawkish comments by Federal Reserve officials force investors to scale back their bets for steep rate cuts this year, which continues to act as a headwind for the non-yielding Gold price.
- Fed Chair Jerome Powell said on Sunday that the central bank can be prudent in deciding when to start easing on the back of a strong economy, smashing any remaining hopes for an interest rate cut in March.
- Adding to this, Richmond Fed Thomas Barkin said on Thursday that the central bank has time to be patient on rate changes and that he needs to see good inflation numbers being sustained and broadening.
- This assists the yield on the benchmark 10-year US government bond to hold above 4.0% and undermines the XAU/USD, though subdued US Dollar price action lends support and helps limit the downside.
- Market participants now look to the US consumer inflation figures due next week for cues about the timing and the pace of rate cuts this year, which, in turn, should provide a fresh directional impetus to the metal.
- The commodity, meanwhile, remains on track to register modest weekly losses, though remains confined in a multi-week-old trading range held since the beginning of this year, warranting caution for aggressive traders.
(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-202402090524