October 26, 2023 (MLN): Domestic bullion experienced a significant surge on Thursday, with the price of 24-karat gold increasing by Rs2,900 per tola to Rs211,350 at close.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold went up by Rs2,486 to Rs181,198 at closing.
While 10-gram 22-karat gold stood at Rs166,098, up by Rs2,278 compared to the previous close.
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.
The spike in the local bullion today is attributed to the rise in global prices and a relatively weaker Pakistani Rupee (PKR).
The local currency marked its third consecutive session of losses against the greenback yesterday.
Furthermore, in today's intraday session, the PKR has depreciated by around 32 paisa against the USD in the interbank.
Gold is denominated in U.S. dollars, hence when the PKR weakens against the USD, the value of PKR-denominated gold rises.
On the global front, international spot gold is up 0.52% and is currently trading at $1990.29.
It is important to mention that this marks the second consecutive session of gains for international gold prices, driven by escalating conflicts in the Middle East.
The Israel-Palestine conflict continues to spark investors' interest in safe-haven assets, particularly gold due to its stability and intrinsic value.
The dollar and benchmark U.S. 10-year Treasury yields advanced after data indicated that new-home sales surged to a 19-month high in September, emboldening expectations of prolonged high rates heading into 2024, as Reuters reported.
Investors now await the European Central Bank’s policy outcome and U.S. GDP numbers later in the day, with a particular focus on the PCE price index on Friday ahead of the Federal Reserve’s rate decision next week.
The U.S. economy likely grew in the third quarter at its fastest pace of any quarter in nearly two years.
“The Fed clearly sees higher interest rates as a route to reining in inflation,” said Nikos Kavalis, managing director at Metals Focus.
Meanwhile, the international spot silver is up by 1% on the day and is currently trading at $23.1.
Copyright Mettis Link News
Posted on: 2023-10-26T13:47:11+05:00
