24-Karat gold price increases by Rs800 per tola to Rs218,900

December 07, 2023 (MLN): Gold price in Pakistan witnessed an uptick on Thursday as the price of 24-karat gold increased by Rs800 per tola to settle at Rs218,900 per tola.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs187,671, reflecting a gain of Rs685.

While 10-gram 22-karat gold stood at Rs172,032, up by Rs629.

The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs 2,620 and Rs 2,246.21, respectively.

It is noteworthy that domestic bullion faced immense pressure, as in just the last two trading sessions, 24-karat gold lost Rs5,500 per tola due to a substantial decline in international prices.

However, the international gold price rebounded on Wednesday and closed the session with a $6 gain.

The upward momentum persisted today, with international spot gold trading 0.23% higher than its previous close at $2,030.01.

Market participants are awaiting U.S. payrolls due on Friday, which could provide more clues about the Federal Reserve's interest rate trajectory.

On the currency front, the Pakistani Rupee (PKR) has remained relatively stable against the USD so far in today's session, compared to its previous closing of PKR 284.14 per USD.

Yesterday’s session marked the seventh consecutive victory for the local unit against the greenback, driven by positivity stemming from the successful staff-level agreement (SLA) between the International Monetary Fund (IMF) and Pakistan.

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

However, the increase in the international market overshadowed the impact of appreciation in the local unit, ultimately benefiting domestic prices.

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