August 29, 2023 (MLN): Domestic bullion rose on Tuesday after witnessing a drop in yesterday's trading session, with 24-karat gold marking an increase of Rs500 to settle at Rs233,500 per tola.
The Karachi Sarafa Association, a reputable jeweler in the precious metals market, reported that the price of 10-gram 24-karat gold closed at Rs200,189 per tola, witnessing a rise of Rs429.
While 10-gram 22-karat gold stood at Rs183,506 per tola, marking an increase of Rs393.
Gold prices continue to benefit from the continuous depreciation of the Pakistani rupee (PKR).
The local unit remains under pressure as the removal of restrictions on letters of credit (LCs) has led to an increased demand for dollars.
Since gold is denominated in U.S. dollars when the PKR depreciates against the U.S. dollar, the value of PKR-denominated gold rises.
Conversely, the price of silver remained unchanged in the domestic market, with 24-karat silver closing at Rs2,850 per tola and the price of 10-gram 24-karat silver settling at Rs2,443 per tola.
On the global front, international spot gold is currently trading at $1,915.49, down by 0.24% compared to the previous close.
“If the U.S. economy is slowing down, that might allow the Fed to be on hold for the time being on the policy side and that potentially should take out some of the fears that further rate hikes are coming in the short term,” said UBS analyst Giovanni Staunovo, as Reuters reported.
Bullion tends to underperform when higher interest rates boost yields on rival safe havens like U.S. bonds.
After Fed Chair Jerome Powell in his remarks at Jackson Hole last week left the door open for more rate hikes, markets are betting on a roughly 1-in-5 chance of another hike at the U.S. central bank’s September meeting, according to the CME FedWatch tool.
Markets are positioning for a slew of U.S. economic data that could firm or trim those bets, with July job openings due at 1400 GMT, the Fed’s favored inflation gauge set to come on Thursday, and non-farm payrolls on Friday.
Meanwhile, international spot silver is currently trading at $24.21, down by 0.14% on the day.
Copyright Mettis Link News
Posted on: 2023-08-29T17:28:08+05:00
