Gold prices rose in Pakistan on Thursday, according to data collected by FXSTERET.
The price of gold stood at 30,407.27 Pakistani rupees (PKR) per gram, an increase compared to 30,248.61 pkr that cost Wednesday.
The price of gold increased to 354,671.30 pkr per tola from 352,813.80 pkr per tola from the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 30,407,27 |
| 10 grams | 304,078.60 |
| Tola | 354,671.30 |
| Troy ounce | 945,761.50 |
What moves the market today: gold stands firm while the dollar and US yets fall
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The weakness of the US dollar could keep the gold prices supported. The US dollar index (DXY), which tracks the value of the dollar against a pairs basket, falls 0.44% to 98.61, reaching minimum of four days.
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The US treasure yields are collapsing; The 10 -year Treasury bonus performance has fallen five basic points (PBS) to 4.42%. The real US yet yields followed the same trend, falling five basic points to 2.13%, promoting the advance of the ingot.
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Inflation in the US rose less than expected in May, with the general CPI increasing 2.4% year -on -year, below 2.5% predicted but slightly above 2.3% in April. The underlying IPC remained stable at 2.8% year -on -year, coinciding with the figure of the previous month and indicating a persistent but stable underlying price pressure.
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Geopolitical tensions are still high, since US president Trump told Fox News that Iran is becoming much more aggressive in nuclear negotiations. Iranian Foreign Minister said: “As we resume the conversations on Sunday, it is clear that an agreement that can guarantee the continuous peaceful nature of Iran’s nuclear program is within reach – and could be achieved quickly.”
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Monetary markets suggest that operators are discounting 47.5 basic flexibility points towards the end of the year, 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.
