Domestic 24-Karat gold retreats Rs4,200 to Rs228,200 per tola

March 22, 2024 (MLN): The domestic bullion retreated on Friday, with the price of 24-karat gold losing Rs4,200 to Rs228,200 per tola in line with international gold prices.

To note, yesterday gold price in Pakistan had surged Rs4,600 per tola.

The Karachi Sarafa Association reported that the price of 24-karat gold reached Rs195,645 per 10-gram, reflecting a drop of Rs3,600.

Similarly, the price of 22-karat gold fell and was quoted at Rs179,341 per 10-gram.

Moreover, silver prices also declined, with 24-karat silver being sold at Rs2,580 per tola and Rs2,211.93 per 10-gram, depicting a fall of Rs20 per tola and Rs17.15 per 10-gram.

Globally, spot gold retreated after surging above $2,200 an ounce for the first time after the Federal Reserve signaled it remains on track for three interest-rate cuts this year.

The yellow metal traded near $2,166.81, down by $14.65 or 0.68% on the day.

Also driving gold's correction, the dollar bounced back up 0.8%, after slipping to a one-week low, making bullion more expensive for overseas buyers, as Reuters reported.

"Overnight aggressive buying seems to have run out of steam and gold prices are correcting, given that rates markets have only marginally discounted the risk of more rate cuts for 2024," said Daniel Ghali, commodity strategist at TD Securities.

Traders are now pricing in a 72% chance that the Fed will begin cutting rates in June, up from 65% before the rate decision.

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