Gold Prices in Pakistan today
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On Wednesday, gold prices fell more than 1% after stronger-than-expected U.S. consumer price index for January, but rebounded later as ongoing trade war uncertainties kept the safe-haven metal’s demand intact.
Trump announced plans to impose reciprocal tariffs on countries that levy duties on U.S. imports, expected Wednesday or Thursday.
“Trump is unpredictable and, as long as uncertainty remains in the market, gold will continue to receive support,” said Ajay Kedia, director at Kedia Commodities, Mumbai.
“Overall, the dollar index is currently under pressure, which has been supportive for gold.”
The dollar index fell 0.2%, making greenback-priced gold less expensive for foreign buyers.
Investors are now focussed on the U.S. Producer Price Index (PPI) data due at 1330 GMT, followed by Friday’s retail sales report, for further economic clues.
Meanwhile, Federal Reserve Chair Jerome Powell, at his second congressional hearing this week, reiterated that the central bank was in no rush to cut interest rates.
“Market is convinced that there is very limited room for the Fed to ease; Fed funds futures trimmed rate cut expectation to 29bps for this year, with the chance of a 25bp cut priced at 78% by September and at 94% by October,” OCBC analysts said.
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