June 10, 2024 (MLN): Gold price in Pakistan remained unchanged on Monday, with 24-karat gold being sold at Rs239,400 per tola.

The Karachi Sarafa Association reported the price of 24-karat gold at Rs205,247 per tola per 10-gram, unchanged from the previous session.

Similarly, the price of 22-karat gold was quoted at Rs188,143 per 10-gram.

Silver prices also remained unchanged in the domestic market, with 24-karat silver being sold at Rs2,750 per tola and Rs2,358 per 10-gram.

On the global front, spot gold held near $2,296 an ounce. On Friday, the yellow metal plunged 3.5%, the most since August 2021, while silver tumbled 7%.

“A strong jobs report reversed a great deal of the rate cut excitement that had built during the past week,” said Ole Hansen, head of commodity strategy at Saxo Bank AS as reported by Bloomberg.

“This report removes hopes for earlier rate cuts, with sticky wage growth and robust employment in need of high rates to cool,” Hansen added.

Fed officials have said they need more evidence that inflation is easing toward the central bank’s 2% target as they consider when to cut rates, while investors are looking for conviction of a soft landing that would justify US rate cuts.

Lower borrowing costs typically boost gold, which doesn’t pay interest.

After surging to a record above $2,450 an ounce, bullion has traded in a fairly narrow range amid the uncertainty over the Fed’s rate trajectory. Swap traders now no longer fully price in a rate cut before December.

Gold was already trading lower earlier Friday as data showed that China’s central bank didn’t buy any gold last month, ending a massive buying spree that ran for 18 months and helped drive the precious metal’s rally.

The People’s Bank of China had been stocking up its reserves since November 2022, leading a flurry of purchases by the world’s central banks amid rising geopolitical tensions.

“My initial thought is that China, a major driver of the gold rally in the past year, is nowhere near done buying gold,” Hansen said. The pause shows that they are balking at the prospect of paying record-high prices.

The PBOC’s demand for bullion has come as the world’s second-biggest economy seeks to diversify its reserves and guard against currency depreciation.

First-quarter purchases by the world’s public institutions were at record levels, with China the biggest buyer, according to the World Gold Council.

Copyright Mettis Link News

Posted on: 2024-06-10T15:22:37+05:00