August 04, 2023 (MLN): Domestic bullion rose on Friday, reversing losses of the previous session with 24-karat gold witnessing a significant rise of Rs1,300 to close the trading session at Rs221,500 per tola.
The Karachi Sarafa Association, a reputable jeweler in the precious metals market, reported that 10-gram 24-karat gold closed the day at Rs189,901 per tola, reflecting a rise of Rs1,115.
Similarly, the price of 10-gram 22-karat gold was noted at Rs174,076 per tola, rising by Rs1,022.
In contrast, the price of silver remained unchanged in the domestic market, with 24-karat silver to close at Rs2,750 per tola and the price of 10-gram 24-karat silver reaching Rs2,358 per tola.
On the other hand, international spot gold is currently trading at $1,943.35 declining by 0.82% on the day.
The U.S. unemployment rate for July stands at 3.5%, with non-farm payrolls (NFP) adding 187,000 jobs for the said month, below market analysts' expectations of 200,000 jobs.
This slightly weaker job growth than expected indicates that the Federal Reserve's efforts to slow down the strong and resilient labor market might be having some impact.
The Bank of England (BoE) on Thursday raised its key interest rate by 25bps to 5.25% and warned that borrowing costs were likely to stay high for some time.
While a European Central Bank board member made the case for keeping the ECB’s interest rates at their current high level for longer.
Interest rates and gold have an inverse relationship, as gold loses its attractiveness in an environment of high-interest rates.
Meanwhile, international spot silver is currently trading at $23.66, down by 2.77% on the day.
