Gold prices rose in Pakistan on Tuesday, according to data collected by FXSTERET.
The price of gold stood at 29,312.23 Pakistani rupees (PKR) per gram, an increase compared to 29,224.33 pkr that cost on Monday.
The price of gold increased to 341,898.90 pkr per tola from 340,866.80 pkr per tola from the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 29,312.23 |
| 10 grams | 293,130.00 |
| Tola | 341,898.90 |
| Troy ounce | 911,734.00 |
What moves the market today: gold prices pressed for high yields of US Treasury bonds.
The yields of the US Treasury bonds are rising, with the performance of the 10 -year Treasury note increasing seven basic points to 4,453%. Meanwhile, the real US yet yields are also stable at 2,163%, as indicated by the yields of the values ​​against the 10 -year Treasury inflation.
The US CSC in April is expected to remain unchanged in 2.4% year -on -year, according to economists. Excluding the volatile elements, it is projected that the underlying IPC will remain unchanged in 2.8% year -on -year.
The World Gold Council revealed that the Popular Bank of China (PBOC) added 2 tons to its gold reserves in April, for sixth consecutive month. The National Bank of Poland (NBP) increased by 12 tons in April to 509 tons; while the Czech National Bank increased its reserves by 2.5 tons in April.
Swaps markets have so far discounted the first reduction of 25 basic points (PB) of the Fed for the July meeting, and expect an additional reduction towards the end of the year.
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.
