Domestic gold loses shine, silver holds ground

June 05, 2023 (MLN): Domestic bullion started the week on a low note, with 24-karat gold falling by Rs1000 to settle at Rs230,400 per tola.

The price of 10-gram 24-karat gold reached Rs197,531 per tola, dipping by Rs857, as per the Karachi Sarafa Association's latest data.

While 10-gram 22-karat gold stood at Rs181,070 per tola.

On the other hand, the price of silver remained stable in the domestic market, with 24-karat silver closing at Rs2,750 per tola, and the price of 10-gram 24-karat silver settling at Rs2,358 per tola, falling by Rs128.32.

Meanwhile, international spot gold is currently trading at $1,958.66 up by 0.49% on the day.

CME FedWatch Tool is pricing in a 72.4% chance of interest rates pausing at the upcoming June 13-14 meeting.

Interest rates and gold have an inverse relationship, as in an environment of high-interest rates, gold loses its attractiveness.

Heraeus said in a note “Gold may be looking overpriced despite a recent decline owing to sticky inflation and the likelihood that the Fed will not meaningfully cut interest rates in 2023,”as Reuters reported.

Gold dropped more than 1% on Friday after data showed the U.S. economy added 339,000 jobs last month, above estimates of 190,000.

International spot silver is currently trading at $23.54, down by -0.10% on the day.

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