Gold prices drop to Rs221,100 per tola, down by Rs600

August 08, 2023 (MLN): Domestic bullion went down on Tuesday, extending losses with 24-karat gold priced at Rs221,100 per tola, down by Rs600 on the day.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs189,558 per tola, down by Rs514.

While 10-gram 22-karat gold marked a decline of Rs472.per tola to close at Rs173,761.

On the other hand, the price of silver remained unchanged in the domestic market, with 24-karat silver closing at Rs2,750 per tola and the price of 10-gram 24-karat silver touching Rs2,358 per tola.

On the global front, international spot gold is currently trading at $1,926.98,  falling by -0.49% on the day.

Gold prices fell to a near one-month low on Tuesday as investors took refuge in the dollar after weak Chinese trade data, while caution prevailed ahead of U.S. inflation figures later this week, as Reuters reported.

The U.S. dollar index (DXY) is currently 0.60% higher on the day, this makes dollar-denominated gold expensive for investors holding other currencies.

Market participants are now monitoring the upcoming U.S. Consumer Price Index (CPI) figures to be released on Thursday.

“U.S. inflation report matters, but the one that’s more important is the one we’ll get next month and that will probably suggest that we’re going to see some choppiness in gold in the near-term,” Moya said.

Fed Governor Michelle Bowman on Monday outlined the likely need for additional rate hikes to lower inflation to the Federal Reserve’s 2% target, while New York Fed chief John C. Williams expected rates could begin to come down next year.

Meanwhile, international spot silver is currently trading at $22.78, dipping by -1.48% on the day.

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