The US Dollar gold price against the Rupee's exchange rate — two of the most common inflation/currency hedges held by Pakistani investors.
The US Dollar gold price against the Rupee's exchange rate — two of the most common inflation/currency hedges held by Pakistani investors.
▸Gold rose 136.1% over the selected period — from 1774$/oz to 4187$/oz.
▸USD/PKR rose 60.2% over the selected period — from 173PKR to 277PKR.
▸Over this period, Gold and USD/PKR showed a moderate relationship, moving in the same direction (correlation coefficient: 0.47).
Sources:: Yahoo Finance & SBP EasyData
Gold is priced in Dollars globally, so for a Pakistani holder, returns come from both gold's own price movement and Rupee depreciation against the Dollar — this comparison separates the two effects visually.
Does gold protect against Rupee depreciation?
Historically, yes in large part — because gold is Dollar-priced, a depreciating Rupee mechanically raises gold's PKR value even if the Dollar gold price is flat, which is why gold is a commonly cited inflation/currency hedge in Pakistan.
Related Comparisons
Related Indicators