Gold prices fell in Pakistan on Tuesday, according to data compiled by FXStreet.
The price for Gold stood at 29,315.11 Pakistani Rupees (PKR) per gram, down compared with the PKR 29,466.15 it cost on Monday.
The price for Gold decreased to PKR 341,925.70 per tola from PKR 343,687.40 per tola a day earlier.
| Unit measure | Gold Price in PKR |
|---|---|
| 1 Gram | 29,315.11 |
| 10 Grams | 293,151.10 |
| Tola | 341,925.70 |
| Troy Ounce | 911,802.50 |
Daily Digest Market Movers: Gold price bulls remain on the sidelines amid fading safe-haven demand
Moody's downgraded America's top sovereign credit rating by one notch, to "Aa1" on Friday, citing concerns about the nation's growing debt pile. This, however, had a modest impact on the global risk sentiment amid rising trade optimism, which, in turn, failed to assist the safe-haven Gold price to capitalize on the previous day's modest gains.
Traders increased their bets on further interest rate cuts by the Federal Reserve in 2025 following the release of weak US inflation figures and Retail Sales data last week. In fact, the current market pricing indicates higher odds of at least two Fed reductions in 2025. This keeps the US Dollar depressed near a one-week low touched on Monday.
On a more hawkish note, Atlanta Fed President Raphael Bostic said that inflation is not moving to target as fast as anticipated, and inflation expectations are moving in a troubling way. Bostic added that the number of rate cuts this year depends on how things turn out, and details of the tariffs will matter. Bostic leans toward only one rate cut this year.
New York Fed President John Williams said that the recent economic data has been very good and that the labor market is pretty much in balance. Williams, however, warned that some forward-looking indicators are signaling concern. The key word for the economy is uncertainty, and the monetary policy is in a good place, Williams added further.
Fed Vice Chairman Philip Jefferson noted that the US could face a one-time increase in the price level from tariffs, but needs to be sure that it does not become a sustained increase in inflation. It is too early to tell how the labor market will be affected by trade policies, and the Fed will keep policy in place to be sure that inflation expectations remain anchored.
Minneapolis Fed President Neel Kashkari said that the ongoing uncertainty at the hands of the Trump administration's trade policies has put a significant dent in investor sentiment. Kashkari added that there will be lots of jobs in the future of the US economy and backed the Fed's wait-and-see approach until the tariff landscape settles out.
On the geopolitical front, the Israeli military issued evacuation orders to people in Khan Yunis – the southern city of Gaza – as it launched a new operation to increase pressure on Hamas to accept a temporary ceasefire. Adding to this, Israel's Prime Minister Benjamin Netanyahu claimed that the defence forces will take control of all of the Gaza Strip.
Meanwhile, US President Donald Trump announced on his Truth Social platform that Russia and Ukraine have agreed to start negotiations towards a ceasefire immediately after separate phone conversations with the leaders of both countries. Trump further said that the conditions of the bilateral talks will be negotiated between the two parties directly.
There isn't any relevant market-moving economic data due for release from the US on Tuesday, leaving the USD at the mercy of speeches by influential FOMC members. Apart from this, trade-related developments will play a key role in driving the broader risk sentiment and producing short-term trading opportunities around the XAU/USD pair.
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.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fails to gather traction, remains below 1.1700
EUR/USD fails to gather momentum, trading below 1.1700 at the end of the week. The pair is pulled down by dwindling prospects for an EU-US trade accord, as US President Trump is expected to send a tariff letter to the European Union later today, while the continued demand for the US Dollar also keeps the risk complex under extra pressure.
Meme coins to watch as Bitcoin hits record high
Meme coins Bonk, Dogwifhat, and Floki are positioned to extend gains as the weekly recovery reaches crucial resistance levels. The meme coins gain bullish momentum on the back of Bitcoin’s (BTC) recovery run, hitting a new all-time high on Thursday.
Gold challenges two-week highs near $3,360
Gold gains upside impulse at the end of the week, trading near the $3,360 mark per troy ounce in respose to solid demand from te safe-haven space. Persistent trade uncertainty underpins the ongoing risk-off mood among investors, lending extra wings to the precious metal.
GBP/USD drops below 1.3500, flirts with three-week lows
GBP/USD continues its weekly retracement on Friday, trading at its lowest level in nearly three weeks below the 1.3500 support. The UK's poor GDP statistics drags on the British pound, while the US Dollar continues to profit from safe-haven flows, sending Cable and its risk-related peers to lower levels.
Week ahead – A storm of CPI data and China’s GDP in focus amid trade uncertainty
Dollar attracts safe haven flows amid trade anxiety. US inflation data could shake July Fed cut probability. UK, Canadian and Japanese CPI numbers also on tap. Weak Chinese growth may increase calls for more stimulus.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.