24-karat gold price inches down to Rs214,200 per tola

November 06, 2023 (MLN): Domestic bullion started the week lower as the price of 24-karat gold fell by Rs400 per tola to settle at Rs214,200.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs183,642, reflecting a loss of Rs343.

While 10-gram 22-karat gold stood at Rs166,452, down by Rs315 on the day.

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.

To note, gold prices in the domestic market extended their upward momentum last week, benefitting from the declining value of the Pakistani Rupee (PKR).

The pressure on the local currency still prevails, as up till now it has lost around 94 paisa against the U.S. Dollar in today’s interbank session.

Accordingly, as local bullion rates are calculated through interbank exchange rates, this benefits local gold prices as gold is denominated in U.S. dollars and when the PKR weakens against the USD, the value of PKR-denominated gold rises.

However, the impact of the decline in international gold prices has outweighed the impact of the depreciation in the local currency, and the prices have inched down in the local market.

On the global front, international spot gold is down by 0.28% on the day and is currently trading at $1,987.17.

The uptick in the U.S. bond yields ahead of a speech by Federal Reserve Chair Jerome Powell later this week led to a decline in international prices.

Similarly, international spot gold has also inched down by 0.1% on the day to $23.18.

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