Gold price in Pakistan: Rates on May 7 – Crypto News – Crypto News
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Gold price in Pakistan: Rates on May 7 – Crypto News

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

The price for 24-carat Gold stood at 20,749.38 Pakistani Rupees (PKR) per gram, down PKR 59.30 compared with the PKR 20,808.68 it cost on Monday.

The price for 24-carat Gold decreased to PKR 242,016.72 per tola from PKR 242,708.39 per tola.

Unit measure Gold Price in PKR
1 Gram 20,749.38
10 Grams 207,493.82
Tola 242,016.72
Troy Ounce 645,378.41

 

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 remains strong amid inflationary environment and uncertainty

  • Richmond Fed President Thomas Barkin said that the current interest rate level should cool the economy enough to bring down inflation to the 2% target, with the strength of the job market giving officials time to gain confidence that inflation will fall.
  • New York Fed President John Williams stated that there would be rate cuts eventually. Williams further stated that he is seeing job growth moderating and the Fed is looking at the “totality” of data.
  • Markets have priced in rate cuts worth 46 basis points (bps) from the Fed by the end of 2024, with the first cut expected in September or November, according to LSEG’s rate probability app.
  • Hamas announced its acceptance of an Egyptian-Qatari cease-fire plan on Monday. However, Israel turned down the deal since it did not fulfill its “core demands” and continued its attack on Rafah in southern Gaza. Still, Israel said that it will continue negotiating, per Reuters.
  • Gold has advanced about 12% this year despite the elevated inflationary environment and uncertainty over when the US Fed will cut rates.
  • The US employment data showed job growth in the US slowed more than expected in April, while the increase in annual wages fell below 4.0% for the first time in nearly three years.

(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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