Domestic gold soars by Rs6,200 per tola, hits Rs221,000

July 18, 2023 (MLN): Domestic bullion surged on Tuesday, with 24-karat gold reaching Rs221,000 per tola, marking an increase of Rs6,200 from the previous trading session.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs189,472 per tola, soaring by Rs5,316.

Similarly, the price of 10-gram 22-karat gold was noted at Rs173,683 per tola, marking an increase of Rs4,873.

Meanwhile, the price of silver remained unchanged in the domestic market, with 24-karat silver to close at Rs2,650 per tola and the price of 10-gram 24-karat silver settling at Rs2,272 per tola.

On the other hand, international spot gold is currently trading at $1,963.26, rising by 0.41% on the day.

The gains were supported by softer dollar, while investors are currently anticipating U.S. retail sales data that could have a bearing on the Federal Reserve’s policy outlook as inflation shows signs of cooling, as Reuters reported.

Moreover, the U.S. dollar index (DXY) has extended its decline, currently 0.17% lower on the day, this makes dollar-denominated gold expensive for investors holding other currencies.

“There seems to be a new support level for gold at $1,950, and it looks unlikely that prices will drop below this level in the near term,” said ActivTrades senior analyst Ricardo Evangelista.

CME FedWatch Tool is pricing a 97.3% chance of an interest rate hike at the upcoming FED meeting.

Interest rates and gold have an inverse relationship, as gold loses its attractiveness in an environment of high-interest rates.

Meanwhile, international spot silver is currently trading at $24.89, rising by 0.24% on the day.

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