Gold prices saw an increase in Pakistan on Monday, with the price for 24-carat Gold reaching 20,868.12 Pakistani Rupees (PKR) per gram, up PKR 45.49 from Friday’s price of PKR 20,822.63. Similarly, the price for 24-carat Gold per tola rose to PKR 243,401.63 from PKR 242,871.04 per tola.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 20,868.12 |
| 10 Grams | 208,681.17 |
| Tola | 243,401.63 |
| Troy Ounce | 649,071.49 |
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 is capped by modest USD strength and positive risk tone
- A buying spree by China’s central bank, along with expectations that lower US interest rates are on the horizon, pushed the Gold price to a fresh record high on the first day of a new week.
- Official data released Sunday showed that bullion held by the People’s Bank of China rose by 0.2% to 72.74 million troy ounces last month, marking the 17th consecutive month of increase.
- The markets have been pricing in an even chance that the Federal Reserve (Fed) will start its rate-cutting cycle at the June policy meeting, which further benefits the non-yielding yellow metal.
- The global risk sentiment got a boost after Israel withdrew more soldiers from southern Gaza and committed to fresh talks on a potential ceasefire, easing geopolitical tensions in the Middle East.
- The US Bureau of Labor Statistics (BLS) reported on Friday that Nonfarm Payrolls (NFP) increased by 303K in March vs the 200K expected and the previous month’s downwardly revised reading.
- Other details of the publication showed that the Unemployment Rate edged lower to 3.8% from 3.9% in February amid a rise in the Labor Force Participation Rate to 62.7% from 62.5% previously.
- The data forced investors to scale back their expectations for a total number of rate cuts in 2024 to two as against three rate cuts projected by the Fed, which pushes the US Treasury bond yields higher.
- The rate-sensitive two-year US government bond and the benchmark 10-year Treasury note surged to a four-month peak on Friday, underpinning the USD and capping gains for the commodity.
- Traders now look to the release of the US consumer inflation figures for March and the FOMC meeting minutes on Wednesday for cues about the Fed’s rate-cut path and a fresh directional impetus.
(An automation tool was used in creating this post.)
Gold FAQs
Gold has traditionally been valued for its role as a store of value and medium of exchange, with its current status as a safe-haven asset making it an attractive investment during times of uncertainty. In addition to its use in jewelry, gold is also viewed as a hedge against inflation and currency depreciation due to its independence from any specific issuer or government.
Central banks are significant holders of gold, often increasing their reserves to bolster their currencies during economic turbulence. This diversification of reserves through gold purchases enhances the perceived strength of both the economy and the currency. Emerging economies like China, India, and Turkey have been rapidly expanding their gold reserves, with central banks collectively adding 1,136 tonnes of gold worth approximately $70 billion to their reserves in 2022, marking the highest yearly purchase on record.
Gold exhibits an inverse correlation with the US Dollar and US Treasuries, both major reserve and safe-haven assets. The depreciation of the dollar typically leads to an increase in gold prices, allowing investors and central banks to diversify their portfolios during turbulent times. Additionally, gold’s price movement is inversely related to risk assets, with a strong stock market often suppressing gold prices while turmoil in riskier markets tends to elevate the precious metal’s value.
The price of gold can be influenced by a variety of factors, such as geopolitical instability or concerns about a severe recession, prompting sharp increases in gold prices due to its safe-haven status. Gold typically appreciates in environments of lower interest rates, as it is a yield-less asset, while higher interest rates can exert downward pressure on gold prices. However, the performance of gold is heavily dependent on the behavior of the US Dollar, as the asset is priced in dollars (XAU/USD). A strong dollar tends to constrain gold prices, while a weaker dollar often results in upward pressure on gold prices.
Gold prices saw an increase in Pakistan on Monday, with the price for 24-carat Gold reaching 20,868.12 Pakistani Rupees (PKR) per gram, up PKR 45.49 from Friday’s price of PKR 20,822.63. Similarly, the price for 24-carat Gold per tola rose to PKR 243,401.63 from PKR 242,871.04 per tola.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 20,868.12 |
| 10 Grams | 208,681.17 |
| Tola | 243,401.63 |
| Troy Ounce | 649,071.49 |
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 is capped by modest USD strength and positive risk tone
- A buying spree by China’s central bank, along with expectations that lower US interest rates are on the horizon, pushed the Gold price to a fresh record high on the first day of a new week.
- Official data released Sunday showed that bullion held by the People’s Bank of China rose by 0.2% to 72.74 million troy ounces last month, marking the 17th consecutive month of increase.
- The markets have been pricing in an even chance that the Federal Reserve (Fed) will start its rate-cutting cycle at the June policy meeting, which further benefits the non-yielding yellow metal.
- The global risk sentiment got a boost after Israel withdrew more soldiers from southern Gaza and committed to fresh talks on a potential ceasefire, easing geopolitical tensions in the Middle East.
- The US Bureau of Labor Statistics (BLS) reported on Friday that Nonfarm Payrolls (NFP) increased by 303K in March vs the 200K expected and the previous month’s downwardly revised reading.
- Other details of the publication showed that the Unemployment Rate edged lower to 3.8% from 3.9% in February amid a rise in the Labor Force Participation Rate to 62.7% from 62.5% previously.
- The data forced investors to scale back their expectations for a total number of rate cuts in 2024 to two as against three rate cuts projected by the Fed, which pushes the US Treasury bond yields higher.
- The rate-sensitive two-year US government bond and the benchmark 10-year Treasury note surged to a four-month peak on Friday, underpinning the USD and capping gains for the commodity.
- Traders now look to the release of the US consumer inflation figures for March and the FOMC meeting minutes on Wednesday for cues about the Fed’s rate-cut path and a fresh directional impetus.
(An automation tool was used in creating this post.)
Gold FAQs
Gold has traditionally been valued for its role as a store of value and medium of exchange, with its current status as a safe-haven asset making it an attractive investment during times of uncertainty. In addition to its use in jewelry, gold is also viewed as a hedge against inflation and currency depreciation due to its independence from any specific issuer or government.
Central banks are significant holders of gold, often increasing their reserves to bolster their currencies during economic turbulence. This diversification of reserves through gold purchases enhances the perceived strength of both the economy and the currency. Emerging economies like China, India, and Turkey have been rapidly expanding their gold reserves, with central banks collectively adding 1,136 tonnes of gold worth approximately $70 billion to their reserves in 2022, marking the highest yearly purchase on record.
Gold exhibits an inverse correlation with the US Dollar and US Treasuries, both major reserve and safe-haven assets. The depreciation of the dollar typically leads to an increase in gold prices, allowing investors and central banks to diversify their portfolios during turbulent times. Additionally, gold’s price movement is inversely related to risk assets, with a strong stock market often suppressing gold prices while turmoil in riskier markets tends to elevate the precious metal’s value.
The price of gold can be influenced by a variety of factors, such as geopolitical instability or concerns about a severe recession, prompting sharp increases in gold prices due to its safe-haven status. Gold typically appreciates in environments of lower interest rates, as it is a yield-less asset, while higher interest rates can exert downward pressure on gold prices. However, the performance of gold is heavily dependent on the behavior of the US Dollar, as the asset is priced in dollars (XAU/USD). A strong dollar tends to constrain gold prices, while a weaker dollar often results in upward pressure on gold prices.
