24-Karat gold price inches down to Rs220,500 per tola

December 01, 2023 (MLN): Domestic bullion witnessed a slight downturn on Friday as the price of 24-karat gold inched down by Rs500 per tola to Rs220,500 per tola.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs189,043 reflecting a loss of Rs429.

While 10-gram 22-karat gold stood at Rs173,683, down by Rs393.

The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,620 and Rs2,246.21 respectively.

On the global front, international gold price is up by 0.61% on the day and is currently trading at $2,048.43.

Although gold prices in the international market have seen a significant increase, when the association reported domestic prices, international spot gold was down by $4.

The market's expectations that the Federal Reserve has reached the end of its tightening cycle continue to enforce pressure on the dollar and U.S. bond yields, resulting in benefits for international prices.

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

Likewise, falling yields also benefit the metal as they reduce the opportunity cost of holding the safe-haven asset.    

On the currency front, so far in today's intraday trade, the local currency has appreciated against the U.S. Dollar, compared to its previous closing rate of PKR 285.17 per USD.

Since gold is denominated in U.S. dollars, when the PKR strengthens against the USD, the value of PKR-denominated gold falls.

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