Most recent article: Pakistan Gold price today: Gold falls, according to FXStreet data
Gold prices remained broadly unchanged in Pakistan on Monday, according to data compiled by FXStreet.
The price for Gold stood at 20,789.95 Pakistani Rupees (PKR) per gram, broadly stable compared with the PKR 20,771.16 it cost on Friday.
The price for Gold was broadly steady at PKR 242,489.80 per tola from PKR 242,270.80 per tola a day earlier.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 20,789.95 |
| 10 Grams | 207,894.10 |
| Tola | 242,489.80 |
| Troy Ounce | 646,640.10 |
FXStreet calculates Gold prices in Pakistan by adapting international prices (USD/PKR) 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 remains supported by September Fed rate cut bets
- A combination of diverging forces fails to provide any meaningful impetus to the Gold price and leads to subdued range-bound price action on the first day of a new week.
- The Federal Reserve adopted a more hawkish stance at the end of the June meeting, while policymakers continue to argue in favor of only one interest rate cut by the end of this year.
- This, along with Friday's better-than-expected US flash PMIs, lifts the US Dollar to its highest level since May 9 and turns out to be a key factor acting as a headwind for the commodity.
- The flash US composite PMI edged up from 54.5 in May to 54.6 this month, or the highest level since April 2022, suggesting that the economy ended the second quarter on a solid note.
- Meanwhile, the prices paid for inputs measure dropped to 56.6 from 57.2 previous, while the output prices gauge fell to 53.5, marking one of the slowest rises over the past four years.
- This comes on the back of softer US consumer and producer prices, which, along with last week's disappointing US Retail Sales figures, keep bets for two rate cuts this year on the table.
- According to the CME Group's FedWatch Tool, the markets are currently pricing in over a 60% chance that the Federal Reserve will begin cutting interest rates at the September meeting.
- The US central bank is anticipated to lower borrowing costs further in December, which acts as a headwind for the US Treasury bond yields and lends support to the XAU/USD.
- The security pact between Russian President Vladimir Putin and North Korean leader Kim Jong-un in Pyongyang raises the risk of a further escalation of geopolitical tensions.
- Furthermore, French President Emmanuel Macron's decision to call snap elections sparked concerns about wider political uncertainty and should limit losses for the safe-haven metal.
- Traders will continue to take cues from comments by FOMC members ahead of this week's release of the final US GDP and the Personal Consumption Expenditures (PCE) Price Index.
(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.
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