Gold prices fell in Pakistan on Friday, according to data collected by FXSTERET.
The price of gold stood at 29,861.28 Pakistani rupees (PKR) per gram, below 30,094.93 pkr that cost Thursday.
The price of gold decreased to 348,297.10 pkr per tola from 351,021.30 pkr per tola from the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 29,861.28 |
| 10 grams | 298,613.70 |
| Tola | 348,297.10 |
| Troy ounce | 928,769.10 |
Daily Gold Market Movements: The Fall of US returns and the weak dollar drive Xau/USD
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The yields of the US Treasury bonds are falling after the publication of US data from the 10 -year bonus collapse at four basic points (PB) to 4.30%. Meanwhile, US real yields followed the same trend, also lowering four PB to 2.11%.
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The initial applications of unemployment subsidy in the US for the week that ended on May 24 increased by 240,000, compared to 226,000 of the previous week and exceeding the forecasts of 230,000.
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The second EE.U. GDP estimation for the first quarter of 2021 was -0.2% integrable contraction, improving with respect to the preliminary estimate of -0.3%.
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The Federal Reserve Proceedings cited uncertainty on the potential impact of tariffs on the economy, with officials adopting a patient posture due to high risks of high inflation and unemployment.
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Those responsible for monetary policy recognized some risks of stagflation by pointing out that the “Committee could face difficult compensation if inflation turns out to be more persistent while the perspectives of growth and employment are weakened.” They added that they are waiting for the “net economic effects of the variety of changes in government policies become clearer.”
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The data revealed that gold imports to Switzerland from the US reached their highest level from at least 2012 in April.
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Monetary markets suggest that operators are valuing 49 basic relaxation points towards the end of the year, after the weak report of initial unemployment subsidy applications in the US, 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.
