Gold prices in Pakistan have seen a considerable rise and fall in the last week.They started the week at Rs 50500 and ended the week at Rs 51000.Gold prices in Pakistan and Gold prices in USA showed a considerable rise in last month.The main reason for theirrise was scenario created after the Brexit referendum results.The post-brexit scenario created uncertainty and instability in the international markets.The gold prices in USA continued to rise in the first week of the current month also.The gold prices in USA started the week at $ 1352/ounce and ended the week at $ 1356/ounce. Following are the most important reasons for the rise in the gold prices.
Gold prices in USA and Post Brexit Scenario
Brexit referendum results are causing gold prices in USA and gold prices in Pakistan to rise at a very.The post-brexit scenario has improvedthe safe haven status of the gold .It has again brought the gold in the limelight. The safe haven status of the gold has forced investors to flock towards the gold.
The international business environment is still suffering from the aftershocks of the Brexit referendum results.This environment has created a very good opportunity for the gold investors to earn some good bucks from their gold investments.Gold experts claim that gold pricescan touch $ 1400/ounce in next few weeks.Same is the case with the gold prices in Pakistan. But the next month gold prices in USA are totallydependent on the FED monetary policy decisions. Some experts believe that financial markets have outlived the bad effects of the post-brexit scenario.
American economy has also showed improvement in the last month.The last month job report figures show that US economy has created 287000 jobs in the last month.This job figure is 112000 more than the estimated figure by the experts.Now it is expected that Federal reserve will certainly raise its interest rates in next few months.The international gold prices can fall after the increasein Federal interest interest rates.
World stock markets have also come out of the Post -scenario and they also showed improvement last week.US stock markets.The benchmark S&P 500 reached 2,156.45 points on Wednesday.It broke the record of Tuesday’s trade.The market touched 2,155.40 points mark on Tuesday. Dow Jones also reached 18,390.16 points mark.The FTSEurofirst 300 index consists of top stocks of its region.This index reached highest point of last two weeks.
Short term investors can earn from their gold investments but long term outlook of gold is not clear.So investors should adopt short term trading strategies in the gold market.