- The Rise in Gold Prices continued in Pakistan following the trends of the International Market.
Gold prices rose to $2,350 ahead of the US PCE Price Index, supported by indications of a slowing US economy and persistent inflation concerns.
The US Dollar gained strength due to expectations of the Fed maintaining higher interest rates amidst sticky inflation, which limited gold’s gains. Additionally, positive market sentiment weighed on safe-haven assets like gold. Despite these factors, gold struggled to make significant headway.
Recent data from the US Commerce Department revealed higher-than-expected underlying inflation in the first quarter, reinforcing expectations that the Fed would delay rate cuts. This kept US Treasury bond yields elevated, supporting the Dollar. The US GDP report showed a notable slowdown in economic growth and persistent inflation, further backing gold prices.
Technically, gold faced resistance at the 100-period Simple Moving Average on the daily chart, around $2,345, with potential for further gains towards $2,371-2,372 and possibly $2,400. Conversely, a drop below $2,300 could lead to a corrective decline towards $2,260-2,255, followed by $2,225 and $2,200-2,190.
Investor focus remained on the upcoming release of the US Personal Consumption Expenditures (PCE) Price Index, which would provide insights into future Fed policy decisions and influence the Dollar’s demand, consequently impacting gold prices.
Is Gold would be a good future Investment
According to the World Gold Council, the rise in gold prices is 15% in 2023 and closed at a record annual high of $2,078 per ounce. Gold can still be a worthwhile investment in 2024, as it’s often seen as a hedge against inflation and an effective tool to stabilize your portfolio.
5 Main Reasons to Have Gold Reserves
- Rise in Gold prices push for Portfolio Diversification
- To have reliable resources of wealth, as we have seen a sustainable rise in gold prices over the past some years and gold has proved to be a valuable asset.
- A very trustable commidity to hedge Inflation
- Regular increse in gold prices somehow is a shield against uncertain geological instabilities, which causes inflation and other economic problems.
- For so many other reasons Gold is always worth and acknowledged for its durability.
Conclusion
The recent rise in gold prices is likely due to a few different factors from investors seeking diversification wealth preservation or protection against inflation and geopolitical risks to investors simply finding solace in the simplicity and stability offered by gold.
And, gold isn’t just valuable in today’s unusual economic climate; its uses can endure well beyond periods of uncertainty. So, if you haven’t added gold to your portfolio yet, it could be worth considering right now to take advantage of the many unique benefits it offers.
Meanwhile, silver rates remain unchanged per tola to settle at Rs2,600. You can Also Check Today’s Silver Rate Here.
Post Tags:#Current Gold Price#Gold Rate#Increasing Gold Prices#Rise in Gold Rate