Gold prices rose in Pakistan on Tuesday, according to data collected by FXSTERET.
The price of gold stood at 31,410.97 Pakistani rupees (PKR) per gram, compared to 30,882.24 pkr that cost Monday.
The price of gold increased to 366,325.70 pkr per tola from 360,204.30 pkr per tola from the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 31,410.97 |
| 10 grams | 314,070.50 |
| Tola | 366,325.70 |
| Troy ounce | 977,037.60 |
What moves the market today: the price of gold continues to attract safe refuge flows amid concerns about the economic slowdown driven by tariff
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The uncertainty about the high tariffs of US President Donald Trump and its impact on the global economy continues to push the price of gold sure shelter to new historical maximums on Tuesday.
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In addition, Trump’s rapid change of posture about commercial policies, along with a call to say goodbye to the president of the Federal Reserve, Jerome Powell, keeps investors in vilo and further benefits the merchandise.
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Trump accused Powell not to act quick enough to reduce interest rates. In addition, Trump and his team are studying if they can dismiss Powell before the end of his mandate.
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This generates doubts about the independence of the Fed monetary policy, which, together with the bets that the US Central Bank will resume its cycle of feat cuts, continues to weigh on the US dollar.
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According to the CME Group Fedwatch tool, operators are valuing the possibility that the FED reduces interest rates at 25 basic points in June and make at least three rates cuts in 2025.
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In the geopolitical front, the Russian forces launched 96 drones and three missiles in the east and south of Ukraine after the high Easter fire of 30 hours, which was shortly and partially observed.
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The operators now expect the publication of the US Richmond manufacturing index, which, together with the Speeches of FOMC influential members, will boost the demand of the USD.
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However, the approach will continue in the preliminary PMIS on Wednesday, which will offer new perspectives on global economic health and provide significant impulse to the Xau/USD couple.
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.
