Gold prices in Pakistan and the Philippines have remained steady amidst a weaker US Dollar and expectations of a Federal Reserve rate cut. According to FXStreet data, gold prices in Pakistan increased slightly on June 18, with the price per gram rising to 20,749.43 Pakistani Rupees (PKR) from 20,719.14 PKR on Monday. The price per tola also rose to 242,021.50 PKR from 241,664.00 PKR. This increase in gold prices can be attributed to the emergence of some US Dollar dip-buying, although any significant slide seems unlikely due to bets for two rate cuts by the Federal Reserve in 2024 [975aa171].
Similarly, gold prices in the Philippines remained broadly unchanged on July 4. The price for gold stood at 4,435.97 Philippine Pesos (PHP) per gram, compared with the PHP 4,435.79 it cost on Wednesday. The price for gold was broadly steady at PHP 51,740.78 per tola from PHP 51,738.14 per tola a day earlier [03528ee9].
Gold is considered a safe-haven asset and a hedge against inflation and depreciating currencies. Central banks, including those in emerging economies like China, India, and Turkey, are major buyers of gold. Gold prices are also influenced by factors such as geopolitical instability and economic conditions. The rise in gold prices is attributed to growing acceptance that the Federal Reserve will start cutting interest rates later this year amid signs of a slowdown in the US economy. The US Department of Labor reported an increase in the number of Americans applying for unemployment insurance benefits, suggesting a cooling US labor market and cementing bets for a September Fed rate cut. Gold has an inverse correlation with the US Dollar and US Treasuries, and its price can be influenced by factors such as geopolitical instability, recession fears, interest rates, and the strength of the US Dollar. The next key event that could impact gold prices is the release of the US Nonfarm Payrolls report, which is expected to show an increase of 185K jobs in May. It is important to note that gold prices in Pakistan and the Philippines are calculated by adapting international prices (USD/PKR and USD/PHP, respectively) to the local currency and measurement units [cda4adf9].
