March 12, 2024 (MLN): The domestic bullion market witnessed a relatively flat session on Tuesday as the price of 24-karat gold edged down by Rs100 to Rs230,100 per tola.
It is crucial to note that gold prices in Pakistan have dropped for the first time after 10 consecutive sessions.
Last week, 24-karat gold spiked nearly Rs10,000 per tola to a level not witnessed since September 2023.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold reached Rs197,274 per tola, reflecting a drop of Rs86.
The price of 10-gram 22-karat gold also saw a slight fall and was quoted at Rs180,834.
Meanwhile, silver prices remained unchanged today, with 24-karat silver being sold at Rs2,600 per tola and Rs2,229.08 per 10-gram.
On the global front, international spot gold traded near $2,177.14 an ounce, down by 0.26% from the previous session.
Investors are watching for a possible hotter-than-expected US inflation read on Tuesday, which could muddy the path for monetary policy.
"Following the stellar run-up in gold prices, it does call for some near-term breather," IG market strategist Yeap Jun Rong said, as Reuters reported.
Traders are pricing in three to four quarter-point (25 bps) U.S. rate cuts, with a 70% chance for the first in June, as per LSEG's interest rate probability app. Lower rates boost the appeal of non-yielding bullion.
Also happening later in the day, the U.S. Treasury is set to sell $39 billion in 10-year notes.
