July 05, 2023 (MLN): Domestic bullion finally found some supporting ground around the psychological level of Rs200,000, with 24-karat gold reaching Rs206,000 per tola, rising by Rs1,000 in today's trading session.
It is worth noting that, on Monday, gold prices dipped significantly by 8,800 per tola as the demand for safe heaven reduced when the long-standing Staff Level Agreement (SLA) worth $3 billion was finally signed between the International Monetary Fund (IMF) and Pakistan.
The decline was extended when prices further fell by Rs2,200 per tola yesterday.
As per the Karachi Sarafa Association, the cost of 10 grams of 24-karat gold was registered at Rs176,612 per tola, witnessing a Rs858 rise per tola.
The price of 10-gram 22-karat gold was noted at Rs161,894 per tola, soaring by Rs786.
Conversely, the price of silver dropped in the domestic market, with 24-karat silver falling by Rs20 to close at Rs2,480 per tola and the price of 10-gram 24-karat silver reaching Rs2,126 per tola, losing Rs17.14
On the other hand, international spot gold is currently trading at $1,926.78 rising by 0.03% on the day.
Investors are eagerly anticipating the release of the minutes of the June meeting of the Federal Open Market Committee (FOMC), due to be released today at 23:00 PST. These minutes will pave the way for financial markets’ next direction.
“To a large extent, the market has already priced in expectations of higher for longer interest rates at this point,” said Edward Gardner, commodities economist at Capital Economics, adding bullion might still not move significantly after the Fed minutes, as Reuters reported.
Moreover, market participants are pricing an 86.2% chance of an interest rate hike in the upcoming FED meeting.
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 currently trading at $22.82, shrinking by -0.61% on the day.
Copyright Mettis Link News
Posted on: 2023-07-05T17:42:24+05:00
