December 06, 2023 (MLN): Domestic bullion witnessed another major setback on Wednesday as the price of 24-karat gold extended losses by Rs1,300 per tola, to settle at Rs218,100 per tola.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs186,986 reflecting a loss of Rs1,114.
While 10-gram 22-karat gold stood at Rs171,403, down by Rs1,022.
The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs 2,620 and Rs 2,246.21, respectively.
The significant loss witnessed by domestic bullion today is attributed to a continuous fall in international prices.
Gold price in the international market extended losses on Tuesday as traders reduced their bets on the likelihood of the first interest rate cut by the Federal Reserve occurring in early 2024.
However, International spot gold rebounded today and is currently trading at $2,030.88, up by 0.57% on the day.
Despite these gains, the loss incurred by the commodity was greater than the proportionate increase today, ultimately resulting in a decline in domestic bullion.
On the currency front, the Pakistani Rupee (PKR) is on track to mark its seventh consecutive win against the U.S. Dollar.
Since gold is denominated in U.S. dollars, when the PKR strengthens against the USD, the value of PKR-denominated gold falls.
Accordingly, declining international prices and a strong domestic currency exerted pressure on domestic bullion, leading to a significant loss.
