Global financial markets saw a positive shift after softer-than-expected US inflation data reduced the likelihood of immediate Federal Reserve rate hikes. This development led to a rally in US Treasuries, with yields easing as investors scaled back expectations for tighter monetary policy. The probability of a 25-basis-point rate increase at the Fed's July meeting notably decreased, shifting market sentiment towards a delayed hiking cycle.
While crude oil prices rose due to US-Iran tensions, typically a factor for inflation, the market's primary focus remained on the US inflation print. Lower US bond yields generally make non-yielding assets like gold more attractive, as the opportunity cost of holding gold decreases. This sentiment often supports bullion prices globally.
For Pakistani investors, this global shift could translate into increased international gold prices due to a potentially weaker US dollar and reduced pressure from rising interest rates. This could influence local gold rates and the USD/PKR exchange rate, as a weaker dollar globally might ease some pressure on the rupee.
بحوالہ / Source: www.brecorder.com