Gold and silver prices reach new peaks of Rs226,900, Rs2,900 per tola

May 08, 2023 (MLN): Domestic bullion continued its climb on Monday, with 24-karat gold reaching Rs226,900 per tola, marking an impressive increase of Rs1,400.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold experienced a notable surge of Rs1,200, settling at Rs194,530 per tola. Meanwhile, 10-gram 22-karat gold stood at Rs178,319 per tola.

The price of 24-karat silver per tola witnessed an upward movement, reaching Rs2,900 with a rise of Rs30. Moreover, 10-gram silver saw an increase of Rs25.72, amounting to Rs2,486.28.

Both gold and silver rates in Pakistan are at hit their all-time highest levels.

International spot gold is currently trading at $2,025.07, with a rise of 0.43% on the day. U.S. gold futures stands at $2,030.8, reflecting an increase of 0.3%.

Han Tan, chief market analyst at Exinity stated that gold remains supported as markets are still wary of further U.S. financial instability, which would only amplify U.S. recession risks, as Reuters reported.

If the woes among regional banks are thrust back into the spotlight, that could trigger another leg up for this safe-haven asset, he added.

Moreover, the U.S. dollar index (DXY) has also continued its decline, currently 0.14% lower on the day, this makes dollar-denominated gold cheaper for investors holding other currencies.

Market participants are now monitoring the upcoming U.S. consumer price index (CPI) figures for April that will be released on Wednesday.

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