June 21, 2023 (MLN): Domestic bullion fell on Wednesday, with 24-karat gold reaching Rs218,700 per tola, marking a decline of Rs1,800.
According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs187,500 per tola, shrinking by Rs1,543.
While 10-gram 22-karat gold stood at Rs171,875 per tola, down by Rs1,415.
Similarly, the price of silver dropped in the domestic market, with 24-karat silver falling by Rs50 to close at Rs2,550 per tola and the price of 10-gram 24-karat silver closing at Rs2,186 per tola, declining by Rs42.87.
Moreover, international spot gold is currently trading at $1,927.71 decreasing by -0.48% on the day.
Investors await Fed chair Jerome Poweel's testimony with cues on the U.S. Federal Reserve's monetary policy path.
According to just-released prepared remarks, he will tell lawmakers on Wednesday there is still "a long way to go" to cool inflation and interest rates are expected to rise further this year, reiterating his comments from last week.
"Inflation pressures continue to run high, and the process of getting inflation back down to 2 percent has a long way to go," Powell's prepared remarks state.
“Nearly all [officials] expect that it will be appropriate to raise interest rates somewhat further by the end of the year,” he added.
Moreover, markets are pricing in a 79.4% probability of the Fed hiking rates by 25 bps in July before holding steady for the remainder of the year, according to CME Fed WatchTool.
The latest UK inflation data showed inflation remained higher than expected for a fourth month.
The Consumer Prices Index (CPI) rose by 8.7% in the 12 months to May 2023, unchanged from April but down from a recent peak of 11.1% in October 2022.
The monthly rate in May 2023 was 0.6%, the same as in May last year.
Traders are now betting that the Bank of England might have to accelerate the pace of interest-rate hikes, with some market experts even leaning towards a 50bps hike.
While, international spot silver is currently trading at $22.93, falling by -0.92% on the day.
Copyright Mettis Link News
Posted on: 2023-06-21T17:49:59+05:00
