Gold prices fell in Pakistan on Friday, according to data collected by FXSTERET.
The price of gold stood at 30,441.61 Pakistani rupees (PKR) per gram, below 30,485.25 pkr that cost Thursday.
The price of gold decreased to 355,065.00 pkr per tola from 355,574.00 pkr per tola from the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 30,441.61 |
| 10 grams | 304,424.30 |
| Tola | 355,065.00 |
| Troy ounce | 946,840.80 |
Daily Gold Market Movements: Expand losses after positive employment data in the US.
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The initial applications for unemployment subsidy in the US for the week that ended on July 12 fell 228K in the prior to 221k print, below the 235K forecasts. The data supports the cautious posture of the Fed, since the labor market remains healthy, although it has not been cited as a cause of inflation.
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Retail sales in June exceeded the forecasts of an intermensual 0.1%, increasing an intermennsual 0.6% and crushing the fall of May 0.9%, since part of the increase is a higher prices reflection due to tariffs. The consumer side inflation revealed at the beginning of the week that prices are increasing.
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The governor of the Fed, Adriana Kugler, added to her hard line comments that inflation remains above the objective, while the labor market remains stable and resistant. He added that IPC inflation is expanding to basic goods.
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The president of the Fed of San Francisco, Mary Daly, commented that the economy is in a good place and that, despite the restrictive rates, the June CPI began to show the effect of tariffs. Despite this, he added that tariffs could have a moderate impact on inflation and still favors two rate cuts.
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The US treasure yields remain stable on Thursday, with the 10 -year bonus of US bonus, which typically correlates negatively with gold, stable at 4,461%. However, the prices of the ingot are still pressured by the strength of the dollar. The US dollar index (DXY), which tracks the value of the dollar against a basket of six currencies, rises 0.45% to 98.72.
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The probability of interest rates indicates that the Federal Reserve will maintain its current rates, with 95% probabilities to maintain and 5% for a 25 basic points cut at the July 30 meeting.
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.
GOLD – FREQUENT QUESTIONS
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.
