October 31, 2023 (MLN): Domestic bullion witnessed gains on Tuesday as the price of 24-karat gold rose by Rs900 per tola to settle at Rs213,000.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs182,613, reflecting a gain of Rs771.
While 10-gram 22-karat gold stood at Rs166,688.
International gold prices edged higher today, leading to gains in the local bullion market.
International spot gold is currently trading at $1,997.56, up by 0.07% on the day.
The Israel-Palestine conflict continues to spark investors' interest in safe-haven assets, particularly gold due to its stability and intrinsic value.
Investors’ focus this week is on the U.S. Federal Reserve’s monetary policy decision due on Wednesday, followed by U.S. monthly jobs report on Friday, as Reuters reported.
Fed Chair Jerome Powell is likely to stick to the old script of being data-dependent on the trajectory of Fed funds rate, while keeping expectations alive for one last interest rate hike in December, said Kelvin Wong, senior market analyst for Asia Pacific at OANDA.
Local gold prices were further supported by the declining value of the Pakistani Rupee (PKR) against the U.S. Dollar.
It is worth mentioning that yesterday, the local unit marked its sixth consecutive trading session of losses against the U.S. Dollar.
Since gold is denominated in U.S. dollars when the PKR depreciates against the U.S. dollar, the value of PKR-denominated gold rises.
