Gold rally continues in Pakistan despite global slump

April 15, 2023 (MLN): Domestic bullion had an exceptional week as gold prices surged once again, ending the week with a bang. 24-karat gold jumped up to Rs218,600 per tola, marking a significant increase of Rs1,100 from the previous day.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold rose by Rs943 to reach Rs187,414, while the price of 10-gram 22-karat gold reached Rs171,796.

Silver also saw an upward trend as the 24-karat silver price increased by Rs20, reaching Rs2,570 per tola, while 10-gram 24-karat silver increased by Rs17.15 to reach Rs2,203.36.

However, in the international market, gold saw a sharp decrease of 1.81% on Friday, after surging to a one-year peak of around $2048 in the previous session. It closed the week at $2,003.43.

The recent decrease in gold prices can be attributed to the rise in Treasury yields and the strengthening of the dollar index after a key Fed official warned that the central bank needs to continue hiking rates to curb inflation.

The CME FedWatch tool showed that the market is now pricing in an 80.2% chance of a 25 basis-point hike in May, as compared to a 70% chance at the beginning of the week.

Phillip Streible, a chief market strategist at Blue Line Futures in Chicago, stated his belief that prices will continue to increase and reach a new peak of $2,100, as reported by Reuters.

Silver followed a similar pattern, with a price drop of 1.94% to $25.31 per ounce, after rising to a year’s high of $26.07 earlier in the session. Nonetheless, silver is set for its fifth consecutive weekly gain, with a positive outlook for the future.

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