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Mettis Global News
Mettis Global News

CPI Preview: Inflation to fall below 14% YoY in May

Gold prices dip Rs3,500 per tola as Middle East tensions ease

Gold price plummets Rs6
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April 22, 2024 (MLN): Gold prices in Pakistan cooled down on easing geopolitical tensions in the Middle East, with 24-karat gold losing Rs3,500 to Rs248,700 per tola.

Last week, the yellow metal gained Rs4,600 per tola.

The Karachi Sarafa Association further reported that the price of 24-karat gold retreated to Rs213,220 per 10-gram, down Rs3,021 DoD.

Similarly, the price of 22-karat gold was quoted lower at Rs195,452 per 10-gram.

Moreover, silver prices also fell in the domestic market, with 24-karat silver being sold at Rs2,750 per tola and Rs2,357.68 per 10-gram, a loss of Rs30 per tola and Rs25.72 per 10-gram.

Globally, spot gold traded around $2,359 an ounce, a decrease of 1.37% compared to the previous session.

To note, this comes after the yellow metal recorded a five-week rally, its longest streak in more than a year.

While Israel and Iran have traded strikes, raising concerns about an all-out-war in the region, Tehran has played down the impact and significance of Israel’s recent attack, and also dismissed the low success rate seen in its own assault, reported Bloomberg.

The fact that the Iran regime downplayed Israel’s response, and signaled no retaliation, has taken some risk premium out of the market, according to Nicholas Frappell, global head of institutional markets at ABC Refinery in Sydney.

The bearish sentiment weighing down oil on Monday also supported the idea of easing tensions in the Middle East, he added.

Beyond the Middle East, traders are focusing on US economic data.

On Friday, the personal consumption expenditures price index is projected to show the annual rate rose to 2.6% last month, from 2.5% in February.

That would support the case for Federal Reserve policymakers to delay rate cuts, a scenario that would typically weigh on gold as it doesn’t pay interest.

Gold remains almost 15% higher so far this year, with gains supported by central-bank buying and demand from Asia, especially China.

The commodity has risen despite advances in the US currency and 10-year Treasury yields, factors that would usually be a headwind.

Against that backdrop, banks including Goldman Sachs Group Inc. have been raising their price targets for the metal.

Silver sank about 3% after a four-week surge. Palladium and platinum also traded lower.

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Posted on: 2024-04-22T13:56:50+05:00