Domestic gold rises by Rs600 per tola, hits Rs209,000

July 10, 2023 (MLN): Domestic bullion started the week on a positive note, with 24-karat gold reaching Rs209,000 per tola, rising by Rs600.

It is worth noting that 24-karat gold marked a decline of Rs7,800 per tola, or 3.61% during the first week of July. The decline directly resulted from the long-standing Staff Level Agreement being signed between the International Monetary Fund (IMF) and Pakistan.

As per the Karachi Sarafa Association, the cost of 10 grams of 24-karat gold was registered at Rs179,184 per tola, witnessing a Rs514 rise per tola.

Similarly, the price of 10-gram 22-karat gold was noted at Rs163,623 per tola, rising by Rs472.

Meanwhile, the price of silver remained unchanged in the domestic market, with 24-karat silver to close at Rs2,480 per tola and the price of 10-gram 24-karat silver reaching Rs2,126 per tola.

On the other hand, international spot gold remained relatively unchanged, as currently trading at $1,925.03.

Meanwhile, international spot silver is currently trading at $23.08, marking an increase of 0.09% on the day.

"Gold has got some strong chart support at $1,900. If inflation remains hot, that might push gold below that level and prices might quickly drop to $1,848 level," said Jim Wyckoff, senior analyst at Kitco, as Reuters reported.

The focus this week will be on U.S. CPI (Consumer Price Index) data due on Wednesday after last week's FED minutes showed a vast majority of the policymakers expected further policy tightening.

Higher interest rates dull the appeal of gold, which pays no interest.

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