Domestic gold rises by Rs500 to Rs242,500 per tola

April 25, 2024 (MLN): The domestic bullion market witnessed gains for the second straight session with the price of 24-karat gold gaining Rs500 per tola to reach Rs242,500 per tola on Thursday.

Prior to its recent two-day rally, gold faced a significant downturn and dropped by Rs11,300 per tola on hopes that geopolitical tensions in the Middle East started to ease.

The Karachi Sarafa Association further reported that the price of 24-karat gold at Rs207,905 per 10-gram, up Rs429 DoD.

Similarly, the price of 22-karat gold was quoted higher at Rs190,580 per 10-gram.

This rebound currently being observed in the domestic market is attributed to international gold prices recovering following three significant drops.

"Market focus is back on economic reports and the Fed. If we see hot inflation data, then it is going to be harder for Fed to cut rates and gold could drop to below $2,200," said Jim Wyckoff, senior analyst at Kitco Metals, Reuters reported.

The U.S. gross domestic product (GDP) data is due on Thursday and the Personal Consumption Expenditures (PCE) report on Friday.

Traders now expect the first Fed rate cut to come, most likely in September. Higher interest rates reduce the appeal of holding non-yielding gold.

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