Gold's USD price against the yield on Pakistan's 3-month Treasury Bills — a non-yielding hedge asset against a risk-free Rupee yield.
Gold's USD price against the yield on Pakistan's 3-month Treasury Bills — a non-yielding hedge asset against a risk-free Rupee yield.
▸Gold rose 136.1% over the selected period — from 1774$/oz to 4187$/oz.
▸T-Bill Yield rose 39.9% over the selected period — from 8.50% to 11.89%.
▸Over this period, Gold and T-Bill Yield moved closely together, moving in opposite directions (correlation coefficient: -0.60).
Sources:: Yahoo Finance & SBP EasyData
When T-Bill yields are very high, the opportunity cost of holding non-yielding gold rises — this comparison shows how gold has performed across different domestic interest rate environments.
Why compare gold (a USD asset) to a PKR yield?
It frames the real choice Pakistani investors face: hold a Dollar-priced hedge with no yield, or hold a Rupee-denominated instrument with a high nominal yield but full exposure to Rupee depreciation and local inflation.
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