24-Karat gold price plunges by Rs3,600 per tola in a week

November 12, 2023 (MLN): Domestic bullion witnessed a major setback this week as the price of 24-karat gold declined by Rs3,600 per tola and settled at Rs211,000.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed yesterday’s session at Rs180,898, reflecting a loss of Rs1,800.

While 10-gram 22-karat gold stood at Rs166,452, down by Rs1,650 on the day.

The price of silver remained unchanged over the week in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,580 and Rs2,211.93 respectively.

Domestic gold prices are influenced by changes in international prices and fluctuations in the local currency's interbank exchange rate.

Accordingly, the decrease in local prices is credited to a noteworthy reduction in global prices.

International prices recorded their second consecutive weekly decline as demand for safe haven eased, and hawkish remarks from Federal Reserve Chair Jerome Powell strengthened the U.S. dollar and Treasury yields.

The international spot gold closed the week at $1,938.39, down by 2.72% compared to the previous week’s closing.

Moreover, local gold prices benefited from the depreciation of the Pakistani Rupee (PKR), as it lost 2.178 rupees in value this week.

Gold is denominated in U.S. dollars and when the PKR weakens against the USD, the value of PKR-denominated gold rises.

However, the gains generated through the local unit's depreciation were not significant enough to outweigh the negative impact of the decline in international prices.

As a result, domestic bullion prices declined and concluded their trajectory of weekly gains.

Copyright Mettis Link News