Gold prices rose in Pakistan on Tuesday, according to data collected by FXSTERET.
The price of gold stood at 30,869.94 Pakistani rupees (PKR) per gram, compared to 30,805.23 pkr that cost on Monday.
The price of gold increased to 360,060.90 pkr per tola from 359,306.20 pkr per tola from the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 30,869.94 |
| 10 grams | 308,699.40 |
| Tola | 360,060.90 |
| Troy ounce | 960,163.20 |
What moves the market today: the bulls of the price of gold seem reluctant to a modest increase in the USD; The fall seems cushioned
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Israel attacked Iran’s state television station on Monday, while Iran said he is preparing for the biggest and most intense missile attack in history about Israeli soil. The president of the United States, Donald Trump, left the G7 summit one day before due to the situation in the Middle East and has asked the National Security Council to meet in the situation room.
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It is reported that three oil tankers are in flames in the Gulf of Oman near the Ormuz Strait, which generates concerns about a possible repetition of the 2019 attacks attributed to Iran. This increases the risk of a higher escalation of geopolitical tensions in the Middle East and helps the price of gold, considered safe refuge, to gain some positive traction during the Asian session on Tuesday.
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The US dollar advances slightly in the midst of repositioning operations before the crucial two -day FomC policy meeting that starts later today and acts as a wind against precious metal. The Federal Reserve is expected to maintain the Statu Quo and maintain its reference rate without changes in the concern that Trump tariffs can increase consumer prices.
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Meanwhile, the increase in the USD lacks bullish conviction due to the growing bets that the Fed will resume its cycle of rates cuts in September. Therefore, the Declaration of Accompanying Policy and the comments of the President of the Fed, Jerome Powell, during the press conference after the meeting will be examined closely in search of clues on the future path of the feat cuts.
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This, in turn, will help determine the following section of a directional movement for the USD and the yellow metal that does not yield. Meanwhile, the persistent uncertainties related to trade and geopolitical risks derived from the worsening of the Iran-Israel conflict could continue to act as a tail wind for the safety refuge raw material.
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.
