24-Karat gold price climbs Rs2,000 per tola to Rs214,800

November 15, 2023 (MLN): Domestic bullion maintained its bullish momentum on Wednesday as the price of 24-karat gold soared by Rs2,000 per tola to settle at Rs214,800.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs184,156, reflecting a gain of Rs1,714.

While 10-gram 22-karat gold stood at Rs166,452, up by Rs2,358.

The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,580 and Rs2,211.93 respectively.

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

Accordingly, this increase in bullion prices is attributed to a surge in international prices and a weaker Pakistani Rupee (PKR).

International gold prices marked their third consecutive rise driven by weaker U.S. dollar and bond yields.

The latest U.S. inflation data further boosted investor confidence, signaling that the Federal Reserve had concluded its interest rate hikes.

Consequently, the dollar index plunged to a more than two-month low, making gold less expensive for other currency holders.

The U.S. consumer price index (CPI) for October 2023 rose by 3.2% YoY, as compared to the 3.7% YoY numbers in September.

Meanwhile, on a sequential basis, US CPI remained unchanged with 0% MoM as compared to 0.4% in the previous month.

Accordingly, consumer prices rose at a slower-than-expected pace, wherein the market was expecting 3.1% YoY and 0.1% MoM.

International spot gold is currently trading at $1,970.56, up by 0.37% compared to its previous close.

Similarly, international spot silver witnessed an increase of 0.82%, currently trading at $22.29.

Domestic gold prices found further support in the declining value of the Pakistani Rupee (PKR) as the local unit is on course for its 17th consecutive loss against the USD.

The pressure resulting from the gap between the demand and supply of dollars still prevails over the market and the local unit is yet to face another tough session against the USD.

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

Copyright Mettis Link News