Gold prices in Pakistan: Rates as on May 7, 2011

According to FXStreet data, gold prices fell in Pakistan on Tuesday.

On Wednesday, 24-carat Gold prices stood at 20,749.38 Pakistani Rupees per gram – down by PKR 59.30 from Monday’s total cost of 20,808.68 per gram.

Price for 24-carat Gold has decreased to PKR 242,016.72 per tola from its prior price of PKR 242,708.39 per tola.

1. Gram – $20749.38, 10. Grams- 207493.82 for Tola-24216.72, Troy Ounce 645 378 41
FXStreet calculates gold prices in Pakistan by adapting international gold/USD prices (XAU/USD) into local currency and measurement units. Prices are updated daily based on market rates at time of publishing; please be aware that local rates could differ slightly than quoted here.

Global Market Movers: Gold Prices Remain Firm in Inflationary Environment and Uncertainty

Thomas Barkin, President of the Richmond Federal Reserve Bank, indicated that current interest rate levels should provide enough of a cooling effect on the economy to bring inflation below its 2-percent goal and gain confidence among policy makers that inflation will decline over time. The strength of job markets gives policy makers time to build confidence that inflation will decline over time.
John Williams, president of the New York Fed, stated recently that rate cuts would inevitably come. Williams pointed to slower job growth as evidence for it while noting the “totality” of data available to them as indicators that such cuts might come.
Markets have priced in rate cuts amounting to 46 basis points from the Federal Reserve by the end of 2024; their first cut could come as soon as September or November according to LSEG’s rate probability app.
Hamas confirmed their acceptance of an Egyptian-Qatari ceasefire plan on Monday; however, Israel rejected it since it didn’t fulfill all their core demands and continued attacking Rafah in southern Gaza. Still, Israel said they will continue negotiations, according to Reuters.
Gold has posted impressive growth this year despite inflationary conditions and uncertainty as to when or if the US Federal Reserve will cut interest rates.
US employment data showed slower job growth and an annual wage inflation figure below 4.0% for the first time in nearly three years in April.

(This post was generated with an automated tool.)

Gold has long played an essential role in human history as both an asset store and medium of exchange. Today, its use as jewelry aside, gold has long been considered a safe-haven investment during turbulent times; not to mention acting as a hedge against inflation and devaluing currencies since there’s no single issuer or government that must support it to remain valuable. Here you will find Gold FAQs.

Central banks are among the biggest holders of Gold. To support their currencies in times of turmoil, central banks diversify their reserves by purchasing Gold as part of an effort to show strength in both economy and currency. High gold reserves can serve as a symbol of trust for countries’ solvency; central banks added 1,136 tonnes worth around $70 billion worth of Gold into reserves in 2022 according to data provided by World Gold Council – making 2022 one of the highest annual purchases ever since records started; these purchases from emerging economies such as China India Turkey are rapidly building their Gold reserves rapidly as yearly purchases quickly increase since records first began being kept; central banks from emerging economies like China India Turkey are quickly increasing reserves through purchasing of precious metal.

Gold has an inverse relationship to both the US Dollar and Treasuries – two important assets used as reserves and safe-haven investments – providing investors and central banks with diversification in times of volatility. Conversely, its price tends to decrease during stock market rallies while selling-offs tend to benefit it in riskier markets.

Gold’s price can fluctuate due to an array of factors. Geopolitical unrest or recession fears can quickly drive its price up due to its safe-haven status as a yieldless asset; with lower interest rates tending to push Gold upward and higher cost of money often pushing its prices lower. Most fluctuations of course depend on what happens with US Dollar (USD); when priced in dollars it tends to maintain control, while weakening USD can push Gold prices higher.