November 28, 2023 (MLN): Domestic bullion witnessed gains on Tuesday with the price of 24-karat gold increasing by Rs800 per tola to Rs218,400 per tola.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs187,243 reflecting a gain of Rs686.
While 10-gram 22-karat gold stood at Rs171,010, up by Rs630.
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 reached its 6-month peak today and is currently trading at $2013.75.
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.
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 285.64 per USD.
Since gold is denominated in U.S. dollars, when the PKR strengthens against the USD, the value of PKR-denominated gold falls.
However, the impact of the rise in international prices outshined the effect of appreciation on the domestic gold prices in today's session.
