Gold prices rose in Pakistan on Friday, according to data collected by FXSTERET.
The price of gold stood at 31,146.48 Pakistani rupees (PKR) per gram, an increase compared to 30,768.90 pkr that cost Thursday.
The price of gold increased to 363,286.90 pkr per tola from 358,882.40 pkr per tola from the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 31,146.48 |
| 10 grams | 311,469.80 |
| Tola | 363,286.90 |
| Troy ounce | 968,771.60 |
What moves the market today: the price of gold shoots while the dollar and the US yets fall
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The dollar collapses to minimum of three years, according to the US dollar index (DXY). The DXY, which follows the value of the dollar against a pairs basket, fell 0.60% to 97.99 after reaching a minimum of several years of 97.60.
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The yields of the US Treasury bonds are falling, since the 10 -year treasure bonus performance has dropped five basic points (PB) to 4,367%. The real US yet yields followed the same trend, losing five basic points up to 2,097%, promoting the advance of the ingot.
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The US Production Price Index (IPP) in May rose 2.6% year -on -year, one tenth above April’s reading of 2.5%. The underlying IPP, which excludes volatile elements such as food and energy, dropped from 3.1% to 3% year -on -year.
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Monthly, the IPP was mainly moderate, rising an intermensual 0.1% below the 0.2% expected by consensus. Excluding food and energy, the IPP rose 0.1%, below 0.3%.
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Geopolitical tensions remain high, as recognized by the US president Trump, who said that Israel could attack Iran in the next few days. Sources cited by The Washington Post pointed out that US intelligence officials are increasingly concerned about an Israel attack to Iran without Washington’s approval.
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Monetary markets suggest that operators are discounting 51 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.
