June 19, 2023 (MLN): The domestic bullion began the week on a negative note, as it continued its downward trajectory on Monday with 24-karat gold reaching Rs220,700 per tola, marking a decrease of Rs1,000.
It is pertinent to note that 24-karat gold fell by a significant Rs5,550 per tola in the previous week.
The Karachi Sarafa Association, a reputable jeweler in the precious metals market, reported that the price of 10-gram 24-karat gold reached Rs189,214 per tola, reflecting a fall of Rs858.
Similarly, the price of 10-gram 22-karat gold was noted at Rs173,447 per tola.
Conversely, the price of silver remained unchanged in the domestic market, with 24-karat silver at Rs2,650 per tola, and the price of 10-gram 24-karat silver reaching Rs2,272 per tola.
On the other hand, the international market was little changed, as the U.S. stock markets are closed today due to the Juneteenth holiday.
International spot gold is currently trading at $1951.4, reflecting a decline of 0.3% on the day.
The dollar held firm, with the U.S. dollar index (DXY) at 102.49.
Investors are looking forward to Fed chair Jerome Powell, who is set to deliver congressional testimonies on Wednesday and Thursday, along with several other feds throughout the week.
Markets are pricing in a 73.2% probability of the Fed hiking rates by 25 bps in July before holding steady for the remainder of the year, according to CME Fed WatchTool.
The Bank of England will also meet on Thursday and is expected to raise interest rates by 25 bps to a 15-year high of 4.75%.
Interest rates and gold have an inverse relationship, as in an environment of high-interest rates, gold loses its attractiveness.
Meanwhile, international spot silver is trading at $23.99, with a decline of 0.99% on the day.
