Gold prices rose in Pakistan on Tuesday, according to data compiled by FXStreet.
The price for 24-carat Gold stood at 20,151.65 Pakistani Rupees (PKR) per gram, up PKR 32.52 compared with the PKR 20,119.13 it cost on Monday.
The price for 24-carat Gold increased to PKR 235,044.87 per tola from PKR 234,665.53 per tola.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 20,151.65 |
| 10 Grams | 201,516.48 |
| Tola | 235,044.87 |
| Troy Ounce | 626,786.78 |
FXStreet calculates Gold prices in Pakistan by adapting international prices (XAU/USD) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Global Market Movers: Gold price eyes record high as geopolitics offset stronger USD
- The Institute for Supply Management reported that the US manufacturing sector expanded in March after 16 straight months of contraction, forcing investors to trim their bets for a June rate cut by the Federal Reserve.
- The shift in expectations lifts the yield on the rate-sensitive two-year and the benchmark 10-year US government bonds to a two-week peak, which underpins the US Dollar and exerts some pressure on the Gold price.
- A sharp rise in the US Treasury bond yields, along with the risk of a further escalation of geopolitical tensions in the Middle East, tempers investors’ appetite for riskier assets and lends support to the safe-haven XAU/USD.
- Israeli air strikes destroyed the Iranian embassy’s consular annex in Syria on Monday, killing seven members, including a top Revolutionary Guard commander, and fuelling fears of further violence between Israel and Iran’s allies.
- Moreover, the US PCE Price Index released on Friday indicated a moderate rise in inflation during February and kept Fed rate cut hopes on the table, which should contribute to limiting the downside for the non-yielding metal.
- Tuesday’s US economic docket features the release of JOLTS Job Openings and Factory Orders, which, along with speeches by a slew of influential FOMC members, should drive the USD demand and provide a fresh impetus.
(An automation tool was used in creating this post.)
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.