Domestic gold price eases with Rs500 per tola drop

April 02, 2024 (MLN): The rally in the domestic bullion market eased on Tuesday as the price of 24-karat gold dropped Rs500 per tola to Rs237,100.

It is crucial to note that the yellow metal gained a substantial Rs19,100 in March in line with the surge in international gold prices.

The Karachi Sarafa Association reported that the price of 24-karat gold reached Rs203,275 per 10-gram, down Rs429 compared to previous session.

Similarly, the price of 22-karat gold was quoted lower at Rs186,335 per 10-gram.

On the other hand, silver prices remained unchanged, with 24-karat silver being sold at Rs2,600 per tola and Rs2,211.93 per 10-gram.

On the global front, international spot gold continued to reach new peak amid cooled US inflation data.

Bullion jumped to $2,261.03 an ounce on Tuesday, up 0.42% from yesterday’s close.

The US core personal consumption expenditures (PCE) index cooled in February, recording an increase of 0.3% MoM and 2.8% YoY.

Fed Chair Jerome Powell on Friday indicated the latest U.S. inflation data did not undermine the central bank's baseline outlook, but said with the economy on a strong footing, "that means we don't need to be in a hurry to cut", as Reuters reported.

"Traders will be casting an eye towards Friday's U.S. nonfarm payrolls release, because if we happen to see another strong jobs report this could provide a catalyst for a gold pullback," Waterer said.

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