Gold price in Pakistan: Rates on August 26 – Crypto News – Crypto News
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Gold price in Pakistan: Rates on August 26 – Crypto News

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Gold prices rose in Pakistan on Tuesday, according to data compiled by FXStreet.

The price for Gold stood at 30,917.54 Pakistani Rupees (PKR) per gram, up compared with the PKR 30,808.63 it cost on Monday.

The price for Gold increased to PKR 360,607.10 per tola from PKR 359,345.80 per tola a day earlier.

Unit measure Gold Price in PKR
1 Gram 30,917.54
10 Grams 309,158.90
Tola 360,607.10
Troy Ounce 961,631.00

 

Daily Digest Market Movers: Gold price edges higher on Fed’s independence and US rate cut hopes

Fed Chair Jerome Powell stated at the Jackson Hole symposium that the US central bank could consider a rate cut at its next policy meeting in September. 

Powell added that the US economy is facing a “challenging situation,” with inflation risks now tilted to the upside and employment risks to the downside.

Dallas Fed President Lorie Logan on Monday said she feels the Fed has more room to reduce its reserves, and she expects banks to turn to its standing repo facility next month to alleviate any liquidity pressures.

Markets are now pricing in nearly an 84.3% possibility for a cut of at least a quarter-point at the Fed’s policy meeting next month, down slightly from the 84.7% in the previous session, according to CME’s FedWatch tool, but well above the 61.9% expectation a month ago.

FXStreet calculates Gold prices in Pakistan by adapting international prices (USD/PKR) 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 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.

(An automation tool was used in creating this post.)

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