July 12, 2023 (MLN): Domestic bullion fell on Tuesday, with 24-karat gold reaching Rs204,500 per tola, marking a decline of Rs4,500.
The downward trajectory for the commodity market is attributed to the positive news flow one after another in recent days, which has sparked investors' confidence.
These latest developments have led to a loss of appeal for risk-off assets as investors leaned towards more risk-on assets, as can be seen by the Pakistan Stock Exchange (PSX) performance.
To note, gold just lost Rs11,500, or 5.32%, since the signing of the long-standing staff-level agreement with the IMF on a $3 billion nine-month SBA.
Yesterday, the State Bank of Pakistan (SBP) received a $2bn deposit from Saudi Arabia.
Moreover, on Monday, Fitch Ratings upgraded Pakistan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC' from 'CCC-'.
The Karachi Sarafa Association, a reputable jeweler in the precious metals market, reported that the price of 10-gram 24-karat gold reached Rs175,326 per tola, reflecting a fall of Rs3,858.
While 10-gram 22-karat gold stood at Rs160,715 per tola, down by Rs3,537.
Meanwhile, the price of silver remained unchanged in the domestic market, with 24-karat silver to close at Rs2,480 per tola and the price of 10-gram 24-karat silver settling at Rs2,126 per tola.
On the other hand, international spot gold closed at $1,932.05 up by 0.36% on the day.
"If we have a soft inflation reading, it will be positive for gold and prices might go up to $1,950. I think it will be tough for gold to break below $1,900 level on a hot report," said Edward Moya, senior market analyst at OANDA, as Reuters reported.
"Rate hikes are not going to break gold's back, but it might kill the economy. So there is some support for gold due to this reason," he added.
All eyes are on U.S. consumer prices data due on Wednesday, which is expected to show prices cooled on an annual basis in June.
Meanwhile, international spot silver closed at $23.12, down by 0.08%.
Copyright Mettis Link News
Posted on:2023-07-12T10:53:43+05:00
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