24-Karat gold hits Rs216,500, up by Rs900 per tola

November 22, 2023 (MLN): Domestic bullion extended gains on Wednesday as the price of 24-karat gold increased by Rs900 per tola to Rs216,500 per tola.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs185,614 reflecting a gain of Rs766.

While 10-gram 22-karat gold stood at Rs169,046, up by Rs1,100.

The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,550 and Rs2,186.21 respectively.

Domestic gold prices are influenced by changes in international prices and fluctuations in the local currency's interbank exchange rate.

On the global front, international spot gold went up by 0.22% on the day and is currently trading at $2,002.9.

The market's expectations that the Federal Reserve had reached the end of its tightening cycle enforced pressure on the dollar and U.S. bond yields,resulting in benefits for international prices.

Despite a rise in international price, the gains were restricted in the domestic market due to the appreciation of the Pakistani Rupee (PKR).

So far in today's intraday trade, the local currency has strengthened by 27 paisa against the U.S. Dollar, compared to the previous closing rate of PKR 285.97 per USD.

This upswing follows the successful staff-level agreement (SLA) between the International Monetary Fund (IMF) and authorities during the first review under the Stand-By Arrangement (SBA)

Since gold is denominated in U.S. dollars, when the PKR strengthens against the USD, the value of PKR-denominated gold falls.

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