Gold prices were practically unchanged in Pakistan on Wednesday, according to data collected by FXSTERET.
The price of gold stood at 30,290.95 Pakistani rupees (PKR) per gram, practically stable compared to 30,271.25 pkr that cost Tuesday.
The price of gold remained practically stable at 353,307.70 pkr per tola from 353,077.90 pkr per tola of the previous day.
| Unit of measure | Gold Price in PKR |
|---|---|
| 1 gram | 30,290.95 |
| 10 grams | 302,909.50 |
| Tola | 353,307.70 |
| Troy ounce | 942,154.60 |
What moves the market today: gold price operators choose to wait for signs on the fed rate cuts path
The Alcistas of the US dollar take a brief pause after the recent strong rebound to a maximum of more than a month reached Tuesday and before the crucial monetary policy of the FOMC later this Wednesday. According to the Fedwatch tool of the CME Group, the operators are currently valuation of 97% the possibility that the Federal Reserve maintain interest rates without changes in the range of 4.25-4.50% despite the constant pressure of US President Donald Trump.
Therefore, the approach will remain focused on the declaration of accompanying monetary policy and the comments of the president of the FED, Jerome Powell, during the press conference after the meeting. There is still the possibility of a more aggressive tone amid the upward risks of inflation by the highest American tariffs. However, investors still expect the Fed to point out a feat cut in September. However, perspectives will influence the USD and affect the price of gold without performance.
In view of the key event of the Central Bank, the operators will take signs of the US ADP report on employment in the private sector amid deceleration signs in the labor market. In fact, the work and labor rotation offers (Jolts) survey published by the US Labor Statistics Office on Tuesday showed that the number of job offers stood at 7.43 million in June, compared to the figure reviewed down 7.71 million in May and the expected 7.55 million.
Separately, the Conference Board Conference Conference Index rose to 97.2 in July from 95.2 the previous month, suggesting that consumers feel optimistic. This could translate into an increase in consumer spending and play a significant role in stimulating economic activity. Therefore, investors on Tuesday will also keep an attentive eye in the advanced GDP figure of the second quarter, which could provide some impulse to the dollar and the Xau/USD dollar.
Market participants this week will also face the publication of the US Personal Consumption Expenditure Index (PCE) and the Non -Agricultural Payroll (NFP) report on Thursday and Friday, respectively. This should continue to instill some volatility in the second half of the week and generate significant trading opportunities around the 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.
GOLD – FREQUENT QUESTIONS
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 increasing money usually ballasts 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.
