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Gold prices in Pakistan increased on Wednesday, with the cost per gram rising to PKR 28,137.55 from PKR 28,050.67 the previous day. The price per tola also saw a rise to PKR 328,190.80, up from PKR 327,177.50.
The US 10-year Treasury note yield decreased by four basis points to 4.169%. Concurrently, real yields edged down to 1.832%, signalling market shifts.
Us Employment And Manufacturing Overview
Job openings in the U.S. fell to 7.568 million in February, while the Manufacturing PMI rose slightly from 49.8 to 50.2. Central banks added 1,136 tonnes of gold to reserves in 2022, the highest purchase on record.
Gold’s price movement may depend on various factors including geopolitical stability and interest rates. A stronger US Dollar may lead to lower gold prices, while a weaker Dollar typically supports price increases.
The increase in gold prices locally reflects more than just regional demand dynamics; it also connects with international market indicators that have begun to shift more clearly in recent days. We’ve observed the per-gram price inch higher above PKR 28,100, marking a continued short-term uptrend. The tola rate also mirrored this upswing. While these are domestic figures, they often shadow broader macroeconomic indicators and sentiment.
From the bond market, there’s been a subtle move—specifically, a dip in the US 10-year Treasury yield by four basis points to 4.169%. That may seem minor, but it carries weight. Lower yields tend to reduce the opportunity cost of holding non-yielding assets like gold. In parallel, real yields declined too, slipping to 1.832%. A move like this points to expectations of either higher inflation or softer economic growth, both of which can support a fresh round of safe-haven buying.
Central Bank Demand And Price Outlook
Labour data was mixed. February’s job openings came down to 7.568 million, a drop from previous levels, suggesting that employers may be cautiously stepping back. Whether that’s tied to concerns about monetary policy or demand softening is up for debate, but it does show a shift in sentiment. On the other hand, the slight tick up in the Manufacturing PMI—from 49.8 to 50.2—pushes it just over the neutral 50 mark. That might hint at a return to expansion, but only just barely.
Now, what’s interesting—if not unusual—is the scale of central bank buying. In 2022, purchases of gold reserves reached 1,136 tonnes, setting a new record. That’s more than just a matter of diversification; it’s a statement. When policymakers with long-term horizons opt for heavier gold allocations, they often do so based on concerns that aren’t fleeting. It reinforces the idea that there’s demand support beneath the surface.
Given all this current data, we’ve been closely watching how these inputs filter through to longer-term contracts and implied volatility levels. The consistency of real yield softening, paired with subdued job figures, suggests that upward short squeezes in gold may not be finished yet, particularly within mid-term maturities. However, traders should also be alert to US Dollar fluctuations. Currency strength tends to weigh on gold, and if we continue to see resilience in the Dollar Index, any push higher in gold may stall or retrace.
In our experience, breakouts that aren’t bolstered by parallel movement in rates or currency often fail to hold. So, for now, we’re dissecting the mix between PMI optimism and employment cooling, seeing where those hedges pile in.
We’ll also need to keep an eye on central bank commentary in the run-up to upcoming monetary decisions. If any shift in tone echoes what we’ve seen in reserve accumulation, especially from Asia or the Middle East, then the bid in gold could remain sticky. After all, positioning doesn’t just respond to price—it often forecasts it.
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