Gold price in Pakistan: Rates on March 8
Gold prices rose in Pakistan on Friday, according to data compiled by FXStreet.
The price for 24-carat Gold stood at 19,387.12 Pakistani Rupees (PKR) per gram, up PKR 91.40 compared with the PKR 19,295.72 it cost on Thursday.
The price for 24-carat Gold increased to PKR 226,127.56 per tola from PKR 225,061.47 per tola.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 19,387.12 |
| 10 Grams | 193,871.20 |
| Tola | 226,127.56 |
| Troy Ounce | 603,007.27 |
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 exhibits strength ahead of Fed Powell’s testimony
- Gold price hits a fresh all-time high around $2,160 as market expectations for Federal Reserve rate cuts in the June meeting increase and global growth prospects remain uncertain. The CME Fedwatch tool shows that the chances for a 25 basis point (bp) rate cut for June’s policy meeting have increased to 60% from 58% on Wednesday.
- The expectations for a rate-cut decision in the June meeting were affirmed despite Fed chair Jerome Powell reiterating that rate cuts are appropriate only if they get convinced that inflation will sustainably return to the 2% target. Powell didn’t offer any specific timing for rate cuts but said, “It will likely be appropriate to begin dialing back policy restraint at some point this year.”
- Contrary to market expectations, Minneapolis Federal Reserve Bank President Neel Kashkari delivered a more hawkish stance on Wednesday. Kashkari said that he expects only one rate cut is appropriate due to robust economic data since the start of the year. In December’s economic projections, Kashkari penciled two rate cuts for 2024.
- Meanwhile, uncertainty over global growth has also improved the appeal of Gold. Jerome Powell warned in his prepared remarks that the economic outlook is uncertain. A few economic indicators signal that the United States economy is losing momentum. The Institute of Supply Management (ISM) PMIs reported a decline in growth in February. In the same period, hiring by private employers was lower at 140K against expectations of 150K. In January, jobs posted by US employers were slightly lower at 8.863 million against the 8.9 million in December.
- Across the globe, the outlook of the United Kingdom and the Eurozone economy is uncertain. The former fell into a technical recession in the second half of 2023, while the latter remained stagnant in the same period. On the Asian side, the Chinese economy has vowed to transform its growth model and set an ambitious growth target of 5% for 2024. However, economists have voiced doubts about the chances of reaching this target due to weak retail domestic demand, disinflation, and the real-estate crisis.
- On the economic data front, the US Department of Labor has reported weekly jobless claims for the week ending March 1. Individuals claiming jobless benefits for the first time rose slightly to 217K from expectations of 215K and the prior reading of 217K. Jobless claims for the last week were revised higher from 215K.
(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.