Gold falls Rs1,100 to Rs214,200 per tola

June 27, 2023 (MLN): Domestic bullion went down on Tuesday, reversing the previous session's gain with 24-karat gold reaching Rs214,200 per tola, down by Rs1,100.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs183,642 per tola, contracting by Rs943.

While 10-gram 22-karat gold stood at Rs168,338 per tola, sliding by Rs865.

Meanwhile, the price of silver remained unchanged in the domestic market, with 24-karat silver to close at Rs2,550 per tola and the price of 10-gram 24-karat silver reaching Rs2,186 per tola.

On the other hand, international spot gold is currently trading at $1,915.69 decreasing by -0.39% on the day.

Moreover, the U.S. dollar index (DXY) declined, currently -0.27% lower on the day, this makes dollar-denominated gold cheaper for investors holding other currencies.

Market participants await Federal Reserve Chair Jerome Powell's speech and more data that could offer clues on future interest rate hikes.

Notably, U.S. consumer confidence increased in June to the highest level in nearly 1-1/2 years, while new single-family home sales rose by a more-than-expected 12.2% in May, as Rueters reported.

Edward Moya, senior market analyst at OANDA said, "Gold did not like the news, that better economic data is going to drive those Fed tightening expectations and that should push up yields as well."

Meanwhile, international spot silver is currently trading at $22.90, up by 0.59% on the day.

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