November 23, 2023 (MLN): Domestic bullion concluded its upward momentum on Thursday as the price of 24-karat gold decreased by Rs650 per tola to Rs215,850 per tola.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs185,057 reflecting a loss of Rs766.
While 10-gram 22-karat gold stood at Rs169,635, down by Rs511.
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 $1,994.93.
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.
However, when the association reported the domestic rates, the international gold was down by $6 on the day, which ultimately led to a decline in domestic prices.
To recall, as per the agreement made between provinces to establish one unified rate across the country, a $20 premium is adjusted in the price of international spot gold to calculate the domestic gold price.
On the currency front, So far in today's intraday trade, the local currency has strengthened by 15 paisa against the U.S. Dollar, compared to the previous closing rate of PKR 285.13 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.
