Pakistan's gold market sees relief after massive drop

April 24, 2024 (MLN): Gold prices in Pakistan ticked up after two straight drops as the 24-karat gold gained Rs1,100 per tola to reach Rs242,000 per tola.

In the past two sessions, domestic gold dropped by Rs11,300 per tola on easing geopolitical tensions in the Middle East.

The Karachi Sarafa Association further reported that the price of 24-karat gold at Rs207,476 per 10-gram, up Rs943 DoD.

Similarly, the price of 22-karat gold was quoted higher at Rs190,186 per 10-gram.

Conversely, silver prices remained unchanged in the domestic market, with 24-karat silver being sold at Rs2,650 per tola and Rs2,271.94 per 10-gram.

On the global stage, international spot gold traded near $2,320, on track to mark its third consecutive daily drop.

To note, international gold prices recorded their biggest daily decline in almost two years on Monday.

Israeli strikes intensified across Gaza in some of the heaviest shelling in weeks, but with fears of a wider conflict receding after Iran said last week it had no plan to retaliate following an apparent Israeli drone attack, financial markets showed signs of sharper appetite for risk, as Reuters reported.

That has meant gold, traditionally seen as a haven from risk, has lost ground, said Julia Khandoshko, CEO at European broker Mind Money.

The market is also closely monitoring signals from the U.S., where inflation data and statements from the Federal Reserve indicate that interest rates may not be cut in June, Khandoshko said.

Recent remarks from Fed officials hinted at no urgency to cut rates, reducing the appeal of non-interest paying bullion. Traders now expect the first Fed rate cut to come most likely in September.

The market will keep a tab on U.S. GDP data due on Thursday and the Personal Consumption Expenditures (PCE) print on Friday for more clues on the health of the economy and the timing of cuts.

Copyright Mettis Link News