Gold price in Pakistan today: gold falls, according to FXSTERET data

Gold prices fell in Pakistan on Friday, according to data collected by FXSTERET.

The price of gold stood at 29,134.04 Pakistani rupees (PKR) per gram, below 29,333.40 pkr that cost Thursday.

The price of gold decreased to 339,813.20 pkr per tola from 342,139.00 pkr per tola from the previous day.

Unit of measure Gold Price in PKR
1 gram 29,134.04
10 grams 291,339.90
Tola 339,813,20
Troy ounce 906,170.60

What moves the market today: gold price uprisers refrain from aggressive bets amid commercial optimism

The United States and China agreed to significantly reduce tariffs and started a 90 -day break to end a broader agreement, marking a decoupling of a disruptive confrontation between the two largest economies in the world. In addition, the US president, Trump, pointed out the ongoing negotiations with India, Japan and South Korea.

The negotiators of Russia and Ukraine, as well as an US delegation, are currently in Istanbul, Türkiye, for the first direct peace talks in three years. However, the absence of Russian president, Vladimir Putin, has already faded the hopes of an advance towards the end of the prolonged war.

Meanwhile, the Israel army intensifies its butcher shop in the Gaza Strip since the dawn on Thursday, and the implacable assault, until now, has killed at least 143 Palestinians. This maintains the geopolitical risks at stake, which, together with the lack of buying interest in the US dollar, could support the price of safe refuge gold.

A torque of weakest economic reports published from the US on Thursday reaffirmed market bets for more interest rate cuts by the Federal Reserve this year. This, in turn, dragged the yields of the US Treasury bonds down and weakened the dollar, providing some support to the yellow metal without yield.

The US Producer Price Index (IPP) for the final demand fell 0.5% in April, marking the first monthly fall since 2023. This adds to the US consumer price index (CPI) of the USA of Tuesday, which rose to the lowest annual rate since February 2021, and pointed even more to signs of relief in inflationary pressures.

Separately, the US Department of Commerce reported that retail sales increased 0.1% in April compared to the revised growth of the previous month of 1.7%. This increases the probability that the US economy experiences several quarters of slow growth and reaffirms the moderate expectations of Fed.

FXSTERET calculates gold prices in Pakistan by adapting international prices (USD/PKR) to the local currency and the units of measure. Prices are updated daily according to market rates taken at the time of publication. Prices are only reference and local rates could diverge slightly.

FAQS GOLD


Gold has played a fundamental role in the history of mankind, since it has been widely used as a deposit of value and a half of exchange. At present, apart from its brightness and use for jewelry, precious metal is considered an active refuge, which means that it is considered a good investment in turbulent times. Gold is also considered a coverage against inflation and depreciation of currencies, since it does not depend on any specific issuer or government.


Central banks are the greatest gold holders. In their objective of supporting their currencies in turbulent times, central banks tend to diversify their reserves and buy gold to improve the perception of strength of the economy and currency. High gold reserves can be a source of trust for the solvency of a country. Central banks added 1,136 tons of gold worth 70,000 million to their reservations in 2022, according to data from the World Gold Council. It is the largest annual purchase since there are records. The central banks of emerging economies such as China, India and Türkiye are rapidly increasing their gold reserves.


Gold has a reverse correlation with the US dollar and US Treasury bonds, which are the main reserve and shelter assets. When the dollar depreciates, the price of gold tends to rise, which allows investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rebound in the stock market tends to weaken the price of gold, while mass sales in higher risk markets tend to favor precious metal.


The price of gold can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the price of gold to rise rapidly due to its condition of active refuge. As an asset without yield, the price of gold tends to rise when interest rates lower, while the money increases to the yellow metal. Even so, most movements depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (Xau/USD). A strong dollar tends to keep the price of gold controlled, while a weakest dollar probably thrusts gold prices.

(An automation tool was used to create this publication.)

Source: Fx Street

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