Gold prices in Pakistan remained stable on Friday, with the cost per gram holding at 30,018.29 Pakistani Rupees (PKR), identical to the previous day’s price. Similarly, the cost per tola was consistent at PKR 350,127.50.
In global markets, the US 10-year Treasury yield rose five basis points to 4.333%, with US real yields also increasing by five bps to 2.163%. This rise did not put downward pressure on Gold prices despite changes in treasury yields.
Impact of Us Economic Data on Gold Prices
Recent economic data from the US showed that Initial Jobless Claims for the week ending April 12 decreased to 215K, below the forecasted 225K. Building Permits increased by 1.6% to 1.482 million, while Housing Starts fell from 1.494 million to 1.324 million, suggesting a decline in residential construction.
In financial markets, traders are expecting 86 basis points of Federal Reserve rate cuts by the end of 2025, with the initial cut predicted in July. Gold prices in Pakistan are determined by adapting global prices to the local currency and measurement units, with daily updates based on prevailing market rates.
Gold’s continued flat line locally, despite movements in broader financial instruments, should not be dismissed as just market inertia. What we’re really seeing is a tug-of-war between international monetary signals and domestic price stability. That the gram held at PKR 30,018.29, with the tola at PKR 350,127.50, implies limited speculative activity in the short term, perhaps due to traders recalibrating expectations around the next leg of central bank policy moves.
Yields on US 10-year Treasuries ticking up by five basis points to 4.333% would typically create downward pressure on non-yielding assets like Gold. But that drop hasn’t happened. In fact, real yields—adjusted for inflation—crept higher as well, which should theoretically erode Gold’s appeal. Instead, the lack of a direct response suggests traders may be placing more weight on what the coming months hold for monetary policy, rather than reacting only to week-on-week changes in yield curves.
US Labor and Housing Figures Analysis
We looked closely at underlying labour and housing figures out of the US. Jobless claims landed at 215,000, tighter than expected. A lower claim count points to a resilient jobs market, though it’s worth noting this comes in the same breath as a contraction in housing starts, slipping from 1.494 million to 1.324 million. Fewer houses breaking ground shows one side cooling off, possibly due to higher lending costs pinching both developers and homebuyers. In contrast, building permits inching up 1.6% to 1.482 million presents a patchy story—more optimism in the pipeline, but less follow-through in the dirt.
The market’s collective judgement, currently pricing in 86 basis points in Fed rate cuts by the end of next year, hints at a growing consensus that inflation risks will eventually drift down enough to justify easing. The timing of that first cut now tilting towards July adds urgency to any medium-term positioning.
While Gold prices in Pakistan simply mirror international markets converted into PKR, the calm on the surface could be misleading. Derivatives traders who typically chase direction or volatility may find themselves frustrated unless they look further out in time. This is where implied volatility metrics across precious metals options become key—especially watching for any skew that might favour downside or upside coverage disproportionately.
Changes in yields haven’t crushed Gold because rates alone aren’t telling the whole story. Inflation expectations, geopolitical murmurs, and shifts in central bank reserves all factor in. And so, even as domestic bullion pricing appears static, we need to assess global positioning with a wider lens—one that incorporates not only economic fundamentals but also market probabilities and potential Fed hesitation.
