January 17, 2024 (MLN): Domestic bullion market witnessed a significant downturn today amid a fall in international prices, as the price of 24-karat gold in Pakistan plummeted by Rs2,000 per tola to stand at Rs215,300.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold stood at Rs184,585, reflecting a fall of Rs1,715.
While the price of 10-gram 22-karat gold stood at 169,203 as compared to the rate of Rs170,775 yesterday.
Silver prices also dropped in the domestic market, with 24-karat silver being sold at Rs2,600 per tola and Rs2,229.08 per 10-gram, reflecting a decline of Rs50 per tola and Rs42.86 per 10-gram.
On the global front, international spot gold fell $6 or 0.31%, currently trading at $2,021.77 [02:46pm PST]. It fell $26 or 1.27% yesterday.
The move lower for commodity prices came as central bankers continued their forceful push-back against market bets for interest rate cuts, deepening a global selloff across stocks and bonds as well, Bloomberg reported.
European Central Bank President Christine Lagarde and Governing Council member Klaas Knot warned on Wednesday that aggressive bets on interest-rate cuts are not helping policymakers in the battle to subdue inflation.
That followed comments on Tuesday from Federal Reserve Governor Christopher Waller, who urged caution on the pace of easing.
Swaps market pricing for a Fed rate cut in March has dropped to around 65% from 80% on Friday, while money markets pushed back bets on the timing of the ECB’s first quarter-point cut to June, from April.
When the Karachi Sarafa Association reported the local rates, the spot rate in the international market was down by $22.
To note, 24-karat gold in Pakistan recorded a decline for the second consecutive week last week.
