April 19, 2023 (MLN): Domestic bullion continued to shine on Tuesday, with the price of 24-karat gold reaching Rs217,400 per tola, up by Rs300 from the previous day.
The precious metal remains a popular safe haven asset for investors amid ongoing concerns over economic instability and recession risks.
According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold rose by Rs257, reaching Rs186,385, while 10-gram 22-karat gold was priced at Rs170,853.
Meanwhile, silver prices remained steady, with the price of 24-karat silver settling at Rs2,530 per tola and 10-gram 24-karat silver at Rs2,170.
International spot gold is down slightly by 0.11%, trading at $2,002.98 in the early Asia trading session, while U.S. gold futures stand at $2,015, down 0.23%. Gold is consolidating above the key $2000 level.
According to Han Tan, who is the chief market analyst at Exinity, the reason behind gold’s almost 10% climb YTD can be mainly attributed to its perceived value as a safe haven, as markets remained cautious about the risks of recession and financial instability, Reuters reported.
The CME FedWatch tool shows that markets are pricing in an 85.4% chance of a 25 basis point hike in May.
StoneX analyst Rhona O’Connell noted that despite most US data, over the past few days pointing to an economic slowdown and a weakening dollar, the background influences remain supportive for gold, as reported by Reuters.
In line with gold, international silver prices also dipped slightly by 0.12% to reach $25.12 per ounce.
