Gold price soars Rs1,800 per tola

June 28, 2023 (MLN): Domestic bullion climbed on Wednesday, with 24-karat gold reaching Rs216,000 per tola, soaring by Rs1,800.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs185,185 per tola, up by Rs1,543.

While 10-gram 22-karat gold stood at Rs169,753 per tola, marking an increase of Rs1,415.

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 settling at Rs2,186 per tola.

On the other hand, international spot gold is currently trading at $1,914.78 down by -0.39% on the day.

Moreover, the U.S. dollar index (DXY) is currently 0.47% higher on the day, this makes dollar-denominated gold expensive for investors holding other currencies.

Gold prices hit their lowest in 3-1/2 months on bets for interest rates remaining higher for longer, as Reuters reported

At the same time, traders await a speech by Federal Reserve Chair Jerome Powell.

However, markets are pricing in an 81.8% probability of the Fed hiking rates by 25 bps in July before holding steady for the remainder of the year, according to CME Fed WatchTool.

Daniel Ghali, commodity strategist at TD Securities said, “Although the market is pricing in a decent chance that the Fed is going to hike in July, the more relevant factor for gold is that the market has been simultaneously pricing out the number of cuts that we could expect over the next year.” 

Meanwhile, international spot silver is currently trading at $22.88, marking an increase of 0.57% on the day.

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