Domestic gold price dips by Rs1,200 per tola

February 05, 2024 (MLN): After snapping its four-week-long losing streak, the domestic bullion has started the new week under the red zone as the price of 24-karat gold plunged by Rs1,200 per tola to Rs214,800 on Monday.

The Karachi Sarafa Association reported that 10-gram 24-karat gold settled at Rs184,156, reflecting a drop of Rs1,029 DoD.

While the price of 10-gram 22-karat gold was reported at Rs168,810 at close.

Last week, gold price in the domestic market surged by Rs2,100 per tola driven by the surge in international prices.

Meanwhile, silver prices remained stable in the domestic market, with 24-karat silver being sold at Rs2,600 per tola and Rs2,229.08 per 10-gram.

International spot gold dropped by 0.8% or $16.18 in today's early trade session following a surge in U.S. Treasury yields and the Dollar due to dampened expectations of a rate cut.

Fed Chair Jerome Powell last week dismissed the idea of lowering interest rates in the spring but voiced confidence that inflation would return to the 2% target, as Reuters reported.

"The remarks from the Fed have not managed to damage the support scenario for gold," said Carlo Alberto De Casa, market analyst at Kinesis Money.

"What can be a problem for gold is only if markets are betting on interest rates being higher for longer, but now the market is sure that the rates are going down this year," he further added

Further pressure was asserted on the domestic gold as the Pakistani Rupee (PKR) is on track to mark another daily success against the mighty Dollar.

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