May 28, 2023 (MLN): Domestic bullion went up on Saturday, with 24-karat gold closing the week with a 0.38% rise, settling at Rs236,200 per tola, rising by Rs450 on the day and by Rs900 in the week.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs202,503 per tola, rising by Rs385 on the day.

While 10-gram 22-karat gold stood at Rs185,628 per tola, marking an increase of Rs354.

On the other, the price of silver stood still in the domestic market, with 24-karat silver closing at Rs2,900 per tola, and the price of 10-gram 24-karat silver closing at Rs2,486 per tola.

Meanwhile, international spot gold closed the week at $1,946.13, marking a weekly decline of 1.58%.

Notably, this marks a 6.52% decline from the new all-time high it made three weeks ago, before experiencing a sharp sell-off.

This can be attributed to the latest U.S. inflation data that was released on Friday.

The U.S. personal consumption expenditure (PCE) for the month of April 2023 came in hotter than expected, at 4.4% YoY, compared to 4.2% YoY in March.

This is a 0.4% MoM increase, higher than the 0.2% MoM increase in the previous month.

Prior to this release, markets were pricing in no rate hike in the upcoming meeting.

However, after this data came, the CME FedWatch tool shows a 57.4% chance of a rate hike in the next meeting.

Interest rates and gold have an inverse relationship, as in an environment of high-interest rates, gold loses its attractiveness.

Moreover, the U.S. dollar index (DXY) marked the third consecutive weekly rise, closing the week with a rise of a significant 1%.

This makes dollar-denominated gold expensive for investors holding other currencies.

Similarly, in line with the gold’s trend, international spot silver closed the week at $23.3, marking a 2.26% weekly decline.

Copyright Mettis Link News

Posted on: 2023-05-28T17:11:48+05:00