Gold prices drop to Rs236,000 per tola in Pakistan

May 25, 2023 (MLN): Domestic bullion loses its shine as 24-karat gold fall by Rs1,800 to Rs236,000 per tola on Thursday.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs202,332, marking a decline of Rs1,543.

While 10-gram 22-karat gold stood at Rs185,471, contracting by Rs1,415.

On the other hand, the price of silver remained stable, with 24-karat silver closing at Rs2,900 per tola and the price of 10-gram 24-karat silver settling at Rs2,486 per tola.

Meanwhile, international spot gold is currently trading at $1961.66 inching up by 0.10% on the day.

Investors are remaining cautious as the debt ceiling has still not been finalized after the talks on Wednesday, and the clock is ticking with only a week left before June 1.

However, some progress has been made on the debt ceiling, Democratic President Joe Biden and top congressional Republican Kevin McCarthy called the talks productive that were held yesterday.

Peter Fertig, an analyst with Quantitative Commodity Research stated that with uncertainties around an 11th-hour debt ceiling deal between Democratic President Joe Biden and top congressional Republican Kevin McCarthy, gold is seeing safe-haven flows, as reported by Reuters.

Moreover, Fed meeting minutes were released yesterday which showed that policymakers generally agreed last month that the need for more interest rate hikes had become less certain.

This makes risk-on assets more attractive for investors, and risk-off assets like gold, less attractive.

International spot silver is currently trading at $23.05, marking a decline of 0.11% on the day.

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