October 28, 2023 (MLN): Domestic bullion witnessed a remarkable surge this week as the price of 24-karat gold soared by Rs4,950 per tola to settle at Rs213,300.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs182,870, reflecting a gain of Rs1,714.
While 10-gram 22-karat gold stood at Rs167,631, up by Rs1,533 compared to the previous close.
The price of silver remained unchanged throughout the week, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,550 and Rs2,186.21 respectively.
The surge in gold prices is attributed to the upward momentum in international gold prices and a relatively weaker Pakistani Rupee (PKR).
International spot gold marked its third consecutive weekly gain driven by escalating conflicts in the Middle East.
The Israel-Palestine conflict continues to spark investors' interest in safe-haven assets, particularly gold due to its stability and intrinsic value.
As a result, the safe-haven commodity gained around 1.3% over the week and breached the $2,000 mark for the first time since May.
Domestic gold prices found further support as the local unit lost another week against the U.S. Dollar.
The PKR depreciated by 1.78 rupees against the US dollar this week and settled the trade at PKR 280.57.
Gold is denominated in U.S. dollars, hence when the PKR weakens against the USD, the value of PKR-denominated gold rises.
