Domestic bullion on a roll, per tola gold stands at Rs222,700

May 04, 2023 (MLN): The domestic bullion continued the upward trajectory, making yet another all-time high with 24-karat gold reaching Rs222,700 per tola, marking a significant surge of Rs.1,700 per tola on Wednesday.

Both domestic gold and silver rates are currently at their highest ever in Pakistan.

According to Karachi Sarafa Association, the price of 10-gram 24-karat gold rose by Rs1,457 to settle at Rs190,929 per tola, and the price of 10-gram 22-karat gold settled at Rs175,019 per tola.

Similarly, the price of silver also inched up slightly in the domestic market, with 24-karat silver increasing by Rs20 to close at Rs2,750 per tola, and 10-gram 24-karat silver gaining Rs17.15 to close at Rs2,357.68 per tola.

Notably, international spot gold prices broke the all-time high set in 2020 and made a daily high of $2,081.82.

However, gold sold off quickly after breaching the all-time high and fell heavily by 2.13% from the daily high and is currently trading at $2,037.29, a change of -0.26% on the day. Meanwhile, U.S. gold futures are at $2,048.

This move came after Fed raised interest rates by 25 bps yesterday, and signaled a possible rate pause.

Fed Chairman Jerome Powell stated that it is a meaningful change to no longer say we anticipate more firming of policy, which opens the door to a potential rate-hike pause.

Closing in on yesterday’s press conference, Powell remarked that the Fed feels like it's close, or maybe even there in terms of reaching a sufficiently restrictive level.

Also coupled with the decline in the U.S. dollar index (DXY) and US benchmark treasury yields.

DXY fell 0.7% yesterday after the Fed meeting, additionally, US10Y and US02Y fell 2.59% and 3.98% respectively.

Yeap Jun Rong, a market analyst at IG, stated that gold has been supported by lower yields and a weaker dollar in the aftermath of the recent Fed meeting, as reported by Reuters.

International spot silver is currently trading at $25.54, down by 0.18%, following gold’s sell-off from the daily highs.

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