Gold rebounds: 24-karat up by Rs1,700 per tola

June 15, 2023 (MLN): Domestic bullion showed signs of recovery today following a downward trend observed over the past few days/weeks, with the price of 24-karat gold reaching Rs220,700 per tola, increasing by Rs1,700.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs189,215 per tola, rising by Rs1,458.

While 10-gram 22-karat gold stood at Rs173,447 per tola, marking an increase of Rs1,336.

Meanwhile, the price of silver remained unchanged in the domestic market, with 24-karat silver closing at Rs2,550 per tola and the price of 10-gram 24-karat silver settling at Rs2,186 per tola.

On the other hand, international spot gold is currently trading at $1,950.82 up by 0.6% on the day.

Moreover, the U.S. dollar index (DXY) has also continued its decline, currently 0.52% lower on the day, this makes dollar-denominated gold cheaper for investors holding other currencies.

The decline in DXY can be attributed to the U.S. Fed's decision to pause the interest rates.

Spot gold was down on the day, sinking to a three months low, however, following ECB's refinancing interest rate hike by 25 basis points to 3.75%-4%, spot gold instantly climbed by 1.62% from the lows.

Meanwhile, international spot silver is currently trading at $23.75, dipping by -0.68% on the day.

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