Gold remains firm at Rs218,000 in domestic bullion

April 13, 2023 (MLN): A slight dip in gold prices greeted domestic bullion on Wednesday as 24-Karat gold shed Rs300 per tola and settled at Rs218,000.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold also fell by Rs257 and stood at Rs186,900 per tola, while 10-gram 22-karat gold stood at Rs171,325 per tola.

In contrast, the price of 24-karat silver remained stable at Rs2,520 per tola, while the price of 10-gram 24-karat silver stood at Rs2,160.50.

In the international market, gold prices rose more than 1% on Wednesday after data revealed that the U.S. Consumer Price Index (CPI) had increased by 0.1% last month, which was lower than the anticipated 0.2% rise.

At the time of writing, spot gold is up by 0.19%, trading at $2,017.83, while U.S. gold futures have risen by 0.34% to $2,031.70.

The surge in gold prices was also attributed to the weakening of the dollar after a softer-than-anticipated CPI print.

According to the CME FedWatch tool, markets are currently pricing in a 68.7% likelihood of a 25 basis-point hike in May, with rate cuts anticipated in the latter half of the year.

Minutes from the Fed’s March meeting revealed that several policymakers had considered pausing rate increases after predicting that banking sector stress could lead to an economic recession. However, they ultimately decided that combating high inflation remained a higher priority.

While gold was a rising star, spot silver fell a bit behind, dipping 0.08% to $25.45 per ounce in the international market.

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