April 14, 2023 (MLN): Domestic bullion prices witnessed a slight downward trend on Thursday as the price of 24-Karat gold decreased by Rs500 per tola, settling at Rs217,500 per tola, leaving market participants to speculate about the future of gold prices.
According to the latest update by the Karachi Sarafa Association, the price of 10-gram 24-karat gold fell by Rs429 and stood at Rs186,471 per tola. Meanwhile, the price of 22-karat gold remained unchanged at Rs170,932.
Conversely, the silver market saw a modest rise in its prices, with the 24-Karat silver increasing by Rs30 to settle at Rs2,550 per tola. Meanwhile, the price of 10-gram silver rose by Rs25.71 to amount to Rs2,186.21.
In the international market, spot gold is on the verge of breaking its all-time high, which was set in 2020. This week alone, spot gold has increased by nearly 1.9%.
At the time of writing, spot gold is trading at $2043.86 per ounce, up by 0.18% on the day. Meanwhile, U.S. gold futures are up by 0.2% and are currently trading at $2059.4.
The weakening U.S. dollar has been a significant driver for the rise in gold prices, with the dollar index sliding to a one-year low. This has made bullion more affordable for buyers holding other currencies, leading to increased demand for the precious metal.
According to Matt Simpson, a senior market analyst at City Index, the recent soft inflation data, lower yields, and calls for a lower terminal Fed rate have also contributed to the appetite to sell the U.S. dollar and invest in gold, as Reuters reported.
The latest data released this week showed that the U.S. producer price index fell the most since April 2020 in March, while the consumer price index rose less than what was expected.
Additionally, there was an unexpected rise in the number of Americans filing for new unemployment benefits, indicating that the labor market conditions were loosening as the demand in the economy weakened due to higher borrowing costs.
In line with the rise in gold prices, the spot silver price also increased. Silver followed the upward trend set by gold, rising by 0.6% and reaching a price of $25.97 per ounce.
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Posted on: 2023-04-14T10:13:10+05:00
