May 02, 2023 (MLN): Domestic bullion had an exceptional day on Tuesday as the price of gold surged with 24-karat gold jumping to Rs221,000 per tola, marking a significant increase of Rs1,500 from the previous day.
Karachi Sarafa Association reported that the price of 10-gram 24-karat gold also rose by Rs1,286 to settle at Rs189,472, while 10-gram 22-karat gold stood at Rs173,683.
The price of 24-karat silver witnessed an increase of Rs130 to close at Rs2,730 per tola. Additionally, 10-gram 24-karat silver gained Rs111.45 to amount to Rs2,340.53.
In the international market, the spot gold price at the time of writing is $2,016.84, showing a change of +1.76% while the U.S. gold futures are currently at $2,023.3, with a change of 1.56%.
Today’s surge in gold can also be attributed to the fall in Treasury yields and the weakness of the dollar.
Benchmark yields have dropped sharply today, with US10Y falling by 3.95% and US02Y falling by 4.63%.
Additionally, the US dollar index (DXY) has fallen 0.18% on the day.
Market participants are closely watching the upcoming Fed meeting tomorrow, with traders betting on a 25-bps rate hike. A hawkish fed tone during the meeting will likely signal the next move for equity markets, and could potentially reduce the excessive rise in gold prices.
Notably, lawmakers led by democrats, including Sen. Elizabeth Warren and Rep. Pramila Jayapal, urged the Fed to halt its rate hikes the day before the rate hike decision, as CNBC reported.
In line with the surge in gold prices, the spot silver price also saw a rise, with the price of spot silver increasing by 1.98% to reach $25.44 per ounce.
