Gold prices rose in Pakistan on Thursday, according to data collected by FXSTERET.
The price of gold stood at 30,686.56 Pakistani rupees (PKR) per gram, an increase compared to 30,439.29 PKR that cost Wednesday.
The price of gold increased to 357,915.70 pkr per tola from 355,037.90 pkr per tola of the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 30,686.56 |
| 10 grams | 306,853.40 |
| Tola | 357,915.70 |
| Troy ounce | 954,449.60 |
What moves the market today: the price of gold benefits from the reactivation of the demand for safe refuge and the resumption of sales around USD
The president of the USA, Donald Trump, said Wednesday that he was not willing to reduce tariffs of 145% imposed on China to promote negotiations on the commercial war. This maintains a limit to optimism generated by the announcement of commercial conversations between the US and China at the end of this week and provides some support for the price of safe refuge gold.
The airports were closed in Moscow in the middle of a massive attack by Ukrainian drones before the three -day truce announced unilaterally by Russian President Vladimir Putin. In addition, Ukraine reported that Russia launched guided bombs almost three hours after the truce went into force earlier this Thursday.
Meanwhile, the Israeli army said it had completely disabled the main Yemen airport in the capital, Saná, which is controlled by the hutis. In response, a member of the main political organ of Los Hutíes said that the response to Israel’s attacks is on its way. This maintains the geopolitical risks at stake and further reinforces the Xau/USD pair.
The Federal Reserve, as expected widely, maintained its key interest rate without changes in a range between 4.25% and 4.5% at the end of a two -day monetary policy meeting on Wednesday. In the accompanying statement, the US Central Bank said that uncertainty about economic perspectives has increased even more.
At the press conference after the meeting, the president of the Fed, Jerome Powell, also pointed out that there are a lot of uncertainty about tariffs and said that the right thing is to expect more clarity. This suggests that the US Central Bank does not lean towards rates cuts in the short term, although it failed to impress the bulls of the US dollar.
Trump said in Truth Social that he will announce an important commercial agreement, the first of many, with representatives of a large and very respected country on Thursday. This remains favorable to a generally positive risk tone around stock markets and could act as a wind against precious metal.
The market approach will remain focused on Trump’s press conference at 14 GMT in the Oval office. Apart from this, Thursday’s publication of the data of the initial weekly applications of Une.UU unemployment subsidy will influence the dynamics of the USD price and will provide a new impetus to the XAU/USD torque later during the US session.
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.
