Domestic gold prices increase marginally

March 14, 2024 (MLN): The domestic bullion market steadied on Thursday with 24-karat gold selling at Rs228,550 per tola, a gain of Rs250 compared to the previous session.

It remains near record-high levels amid expectations for US rate cuts, Chinese buying, coupled with geopolitical tensions.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold reached Rs195,945 per tola, reflecting a gain of Rs215.

The price of 10-gram 22-karat gold also saw a slight increase and was quoted at Rs179,616.

Meanwhile, silver prices remained unchanged today, with 24-karat silver being sold at Rs2,600 per tola and Rs2,229.08 per 10-gram.

On the global front, international spot gold traded near $2,169 an ounce, after a gain of $16.8 or 0.78% yesterday.

Gold is the number one pick in commodities markets for JPMorgan Chase & Co. and the price has the potential to reach $2,500 an ounce this year.

Traders see a 67% chance of a June rate cut, according to LSEG's interest rate probability app, down from 72% before data suggested some stickiness in inflation, as Reuters reported.

The Fed will release its latest 'dot plot' projections at its policy meeting next week. The December meeting projected three-quarter-point rate cuts for 2024.

Other catalysts that could move gold prices could be further bad news on China's housing market and its local government funding mechanism, and trends in consumer demand, Nicholas Frappell, global head of institutional markets at ABC Refinery, said.

Frappell expects official sector demand to remain supportive for gold prices this year.

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