Gold prices fell in Pakistan on Monday, according to data compiled by FXStreet.
The price for 24-carat Gold stood at 21,044.46 Pakistani Rupees (PKR) per gram, down PKR 57.20 compared with the PKR 21,101.66 it cost on Friday.
The price for 24-carat Gold decreased to PKR 245,458.50 per tola from PKR 246,125.61 per tola.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 21,044.46 |
| 10 Grams | 210,444.64 |
| Tola | 245,458.50 |
| Troy Ounce | 654,556.49 |
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 attracts some sellers amid the Fed’s hawkish remarks
- San Francisco Fed President Mary Daly highlighted the need for prolonged restrictive policy to achieve the Fed’s inflation targets.
- Atlanta Fed President Raphael Bostic said that the central bank is probably still planning to cut its interest rates this year, despite the uncertain outlook.
- Dallas Fed President Lorie Logan said that there are upside risks to inflation, adding that it is too soon to cut interest rates.
- Minneapolis Fed President Neel Kashkari stated that he’s in a “wait-and-see mode,” and there is a “high” bar to concluding that higher rates are needed to cool inflation.
- The Israeli military said that it launched operations in northern Gaza overnight and that “precise operations” are ongoing in eastern Rafah and near the Rafah border, as well as in the Zeitoun neighborhood in central Gaza. The military engagement in Rafah occurs before a full-scale invasion, per CNN.
- The initial reading of the Michigan Consumer Sentiment Index dropped to 67.4 in May from 77.2 in April, weaker than the expectation of 76.0.
- The University of Michigan’s (UoM) one-year inflation outlook jumped to 3.5%, while the five-year outlook rose to 3.1%. Both figures registered the highest level since November 2023.
(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.
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