Bullion market starts the week on a low note

June 12, 2023 (MLN): Domestic bullion started the week on a low note, with 24-karat gold reaching Rs225,500 per tola, dipping by Rs1,750.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs193,330 per tola, down by Rs1,500.

While 10-gram 22-karat gold stood at Rs177,219 per tola.

Meanwhile, the price of silver remained unchanged in the domestic market, with 24-karat silver closing at Rs2,650 per tola and the price of 10-gram 24-karat silver closing at Rs2,272 per tola. 

On the other hand, international spot gold is currently trading at $1,963 up by 0.22% on the day.

This week comprises two major events that can have a significant impact on the financial markets, firstly the U.S. consumer price index (CPI) data to be released tomorrow and the Federal Reserve meeting on June 14.

Market participants are closely monitoring both of these events.

CME FedWatch Tool is pricing in a 74.8% chance of interest rates pausing at the upcoming June 13-14 meeting.

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

Moreover, China raised its gold reserves for a seventh straight month to 67.27 million fine troy ounces by May-end, as Reuters reported.

Standard Chartered analyst Suki Cooper noted "a sharp increase in the number of central banks looking to add gold in the next five years."

International spot silver is currently trading at $24.25, increasing by 0.14% on the day.

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