24-Karat gold price edges up to Rs217,200 per tola

December 18, 2023 (MLN): Gold prices in the country started the week on a positive note as the price of 24-karat gold edged up by Rs400 per tola and settled the session at Rs217,200.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs186,214, reflecting a gain of Rs343.

While the price of 10-gram 22-karat gold stood at Rs170,696, up by Rs314.

The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,670 and Rs 2,289.09.

It is crucial to note that domestic bullion experienced an increase in value last week, with the price of 24-karat gold rising by Rs1,200 per tola.

The gains were attributed to the increase in commodity prices in international markets.

International spot gold has continued its upward trend today, currently trading at $2,024.72, reflecting a 0.04% increase for the day.

International gold continues to gain on the US Federal Reserve's statement regarding a cumulative rate cut of 75 basis points in 2024.

As a result, the U.S. treasury yields and the dollar remained under pressure.

A weaker dollar makes gold more affordable for holders of other currencies, exerting a positive impact on gold prices.

Similarly, lower bond yields also impose a positive impact on the metal as they reduce the opportunity cost of holding the safe-haven asset.

In the domestic market, gold prices are also influenced by fluctuations in the local exchange rate.

The Pakistani rupee (PKR) 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 $9m 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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