24-karat gold price surges by Rs2,200 per tola to Rs208,500

October 20, 2023 (MLN): Domestic bullion recorded substantial gains on Friday with the 24-karat gold surging by Rs2,200 per tola and closing at Rs208,500.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold went up by Rs1,886 to Rs178,755 at closing.

While 10-gram 22-karat gold stood at Rs163,859, up by Rs1,729 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.

Haji Haroon Rasheed Chand, the President of the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) stated yesterday that disparity still exists in the domestic bullion, with different rates being quoted at Peshawar and Lahore and there lacks a uniform rate.

However, an agreement has been reached with all the provinces that a premium of $20 will be charged on the international gold price, and the interbank rate will be used for calculations of domestic gold.

Consequently, this will result in one unified rate across the country, ending disparity and helping improve transparency.

The upward momentum witnessed today by the local bullion can be attributed to the rising international prices.

International spot gold is on track for its second consecutive week of gains driven by rising conflicts in the Middle East.

In today’s session, international spot gold marked an increase of 0.21% and is trading at $1,977.84.

Investors prefer safe haven assets like gold during times of political and financial uncertainty.

Similarly, international spot silver also witnessed an increase of 0.31% and is currently trading at $23.11.

Additionally, the Pakistani Rupee (PKR) ended its upward trajectory of weekly gains against the USD, by depreciating 1.18 rupees this week.

The local unit faced a significant setback during the week amid low liquidity of US Dollars within banks.

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

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