March 26, 2024 (MLN): The domestic bullion rose on Tuesday, with 24-karat gold being sold at Rs229,400 per tola, a gain of Rs1,200 as compared to previous session.
To note, last week gold price had inched up Rs700 per tola.
The Karachi Sarafa Association reported that the price of 24-karat gold reached Rs196,674 per 10-gram, up Rs1,029.
Similarly, the price of 22-karat gold was quoted at Rs180,284 per 10-gram.
On the other hand, silver prices remained unchanged, with 24-karat silver being sold at Rs2,580 per tola and Rs2,211.93 per 10-gram.
Globally, spot gold was steady at $2,172.05 an ounce.
Investors are closely monitoring the personal consumption expenditures (PCE) index data, the Fed’s preferred gauge of inflation, which may provide traders with a firmer view on when the Federal Reserve will start cutting interest rates.
The core personal consumption expenditures index, to drop on Good Friday, is expected to show inflation probably remained uncomfortably high in February, as Bloomberg reported.
That could hinder plans by US policymakers to implement three interest rate cuts this year.
Lower borrowing costs typically benefit the precious metal, which doesn’t yield interest.
Swaps markets trimmed wagers for a rate reduction in June to 65% from 69% late last week, after Fed Bank of Atlanta President Raphael Bostic on Monday reiterated his expectation for just one cut this year.
Still, gold remains near an all-time high amid building momentum surrounding the central bank’s long-awaited pivot to monetary easing.
