24-Karat gold price edges down to Rs218,000 per tola

December 21, 2023 (MLN): Domestic Bullion concluded its upward momentum on Thursday as the price of 24-karat gold decreased by Rs500 per tola and settled the session at Rs218,000.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs186,900, reflecting a loss of Rs428.

While the price of 10-gram 22-karat gold stood at Rs171,325.

Meanwhile, the price of silver remained flat in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,650 and Rs 2,271.94.

It is crucial to note that this downside observed in today’s session follows three consecutive sessions in which domestic gold experienced a steady rise, supported by the continual increase in international gold prices.

This decline today is attributed to a fall in international gold prices and a relatively strengthened Pakistani Rupee (PKR).

International spot gold settled around $8.5 lower in the previous session as the U.S. Dollar witnessed a rebound.

Conversely, spot gold is currently trading at $2,037.14, marking a 0.25% increase for the day, as the dollar faced renewed pressure today.

However, the gains are not substantial enough to offset yesterday's decline, resulting in an overall loss for local bullion.

The US Federal Reserve's statement over a cumulative rate cut of 75 basis points in 2024 continues to exert pressure on Dollar and treasury yields, ultimately leading to further gains for the metal.

The loss incurred by the domestic bullion can further be associated with the continuous and steady strengthening of the domestic currency.

The local unit is on track for another daily win against the U.S. Dollar due to the positivity arising from the successful staff-level agreement (SLA) between the International Monetary Fund (IMF) and a current account surplus of $9 million for November.

Since gold is denominated in U.S. dollars, when the domestic currency appreciates against the greenback, the value of PKR-denominated gold falls.

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