April 29, 2023 (MLN): Gold in domestic bullion continued its upward trajectory, with today’s rates reaching an all-time high. As of April 29, 2023, the price of 24-karat gold stood at Rs219,500 per tola, marking an increase of Rs800 from the previous day.
This surge is attributed to a growing demand for safe-haven assets amidst economic uncertainties.
The Karachi Sarafa Association reports that the price of 10-gram 24-karat gold has also experienced a significant increase, reaching Rs188,186 per tola with a rise of Rs686. Meanwhile, 10-gram 22-karat gold is priced at Rs172,504.
Meanwhile, the price of 24-karat silver clocked in at Rs2,600 per tola, and 10-gram 24-karat silver at Rs2,229.08.
In the international market, spot gold closed the week at $1,989.62, with a weekly high of $2,009.34 and a weekly low of $1,974.23, a weekly trading range of 1.78%.
The latest data of March on U.S. inflation and consumer expenditure showed a slowdown, which was reflected in the benchmark yields, with US10Y falling sharply by 2.72% on Friday.
Additionally, a slower-paced growth in the U.S. GDP data released this week also put pressure on the benchmark yields.
A monthly decline in the dollar index (DXY) has also contributed to making bullion cheaper for overseas buyers.
Market participants are closely watching the upcoming Fed meeting next week, on May 2-3, 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.
The weekly close for international spot silver was $25.03, with a change of -0.19% on the week.
The weakening of the dollar has contributed to the increase in the prices of both gold and silver, with investors flocking towards safe-haven assets amidst ongoing economic uncertainties.
