Gold prices rose in Pakistan on Friday, according to data compiled by FXStreet.
The price for 24-carat Gold stood at 21,416.73 Pakistani Rupees (PKR) per gram, up PKR 115.22 compared with the PKR 21,301.51 it cost on Thursday.
The price for 24-carat Gold increased to PKR 249,800.55 per tola from PKR 248,456.63 per tola.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 21,416.73 |
| 10 Grams | 214,167.31 |
| Tola | 249,800.55 |
| Troy Ounce | 666,135.29 |
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.
- Gold price recovers majority of Wednesday’s losses and rises higher to $2,380 as investors remain worried about geopolitical tensions. Traders continue to gung-ho for Gold amid fears that Israel could retaliate to Iran’s attack on their territory in which the Iranian military launched hundreds of drones and missiles.
- The US Dollar rebounds despite other central banks from developed nations are also expected to delay their rate cut plans due to persistent price pressures. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, recovers after correcting to 105.75.
- The near-term demand for the US Dollar remains firm as Federal Reserve (Fed) policymakers see interest rates remaining higher for a longer period until they get convincing data that inflation will return sustainably to the desired rate of 2%.
- In Thursday’s New York session, New York Federal Reserve President John Williams has delivered a hawkish interest rate guidance. Fed Williams doesn’t see urgency for rate cuts and warned that the central bank is ready to hike again if data suggests.
- On Wednesday, Cleveland Fed Bank President Loretta Mester also argued for keeping the monetary policy framework restrictive. Mester remained optimistic that the Fed will eventually gain the confidence to lower interest rates and start normalising policy again, but that shouldn’t be done quickly.
- On the economic data front, the US Department of Labor has posted steady Individual Jobless Claims for the week ending April 12. Individuals claiming jobless benefits for the first time were similar to previous week’s reading of 212K, slightly lower than the estimates of 215K.
(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.
