Gold prices fell in Pakistan on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 30,019.44 Pakistani rupees (PKR) per gram, below 30,057.50 pkr that cost Tuesday.
The price of gold decreased to 350,149.90 pkr per tola from 350,584.80 pkr per tola of the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 30,019.44 |
| 10 grams | 300,202.10 |
| Tola | 350,149.90 |
| Troy ounce | 933,711.10 |
Daily Gold Market Movements: Precious metal collapses by the strong US dollar and the solid consumer confidence in the US.
The yields of the US Treasury bonds remain stable. The 10 -year Treasure Note performance falls six basic points (PBS) to 4,446%. Meanwhile, real US yields also decreased by six basic points to 2,116%.
Consumer confidence in the US in May improved from 85.7 to 98.0, with the recovery attributed to the truce over tariffs. Stephanie Guichard, a senior economist of the Conference Board, said: “The rebound was already visible before the commercial agreement between the US and China of May 12, but won a impulse later.”
The requests for durable goods in the US disappointed investors, falling -6.3% intermensual in April, compared to the increase of 7.6% of March, but exceeded the forecasts of a contraction of -7.8%.
The president of the Fed of Minneapolis, Neel Kashkari, said that interest rates should be kept unchanged until there is clarity on how higher tariffs affect price stability.
Despite the background, the prospects for the price of gold remain optimistic due to the still fragile state of the American asset market, fueled by the growing fiscal deficit in the US, which led Moody’s to reduce the debt of the US government of AAA to AA1.
In addition, Reuters revealed that “the net imports of gold from China through Hong Kong more than they doubled in April compared to March, and they were the highest since March 2024, they showed the data.”
Monetary markets suggest that operators are discounting 46.5 basic flexibility points towards the end of the year, according to Prime Market Terminal data.
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
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
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