24-Karat gold prices increases by Rs1,250 per tola to Rs209,600

October 23, 2023 (MLN): Domestic bullion started the week higher, with the 24-karat gold price increasing by Rs1,250 per tola to Rs209,600.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold went up by Rs1,072 to Rs179,698 at closing.

While 10-gram 22-karat gold stood at Rs163,859, up by Rs897 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.

It is important to mention that last week, domestic bullion marked its second consecutive week of gains driven by the uptick in international prices along with a relatively weaker Pakistani Rupee (PKR).

The PKR concluded its 28-day historical winning streak against the USD last week, depreciating by 1.18 rupees against the greenback.

In today’s session, the local unit shed over 32 paisa against the greenback.

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

The gains incurred by the local bullion today are attributed to a relatively weaker PKR and rising global prices.

In early trading, international spot gold showed gains, fueled by heightened investor interest in safe-haven assets like gold amidst the Israel-Palestine conflict.

However, later the market weighed on the news flow of increased diplomatic initiatives over the weekend aimed at reducing conflicts between Israel and Hamas.

As a result, international spot gold fell and is currently trading at $1,978.73, down by 0.16% compared to the previous close.

Meanwhile, the international spot silver is down by 0.53% on the day and is currently trading at $23.14.

It is worth highlighting that last week, Haji Haroon Rasheed Chand, the President of the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), reached an agreement with all the provinces to issue one uniform rate for the commodity.

According to the agreement, a premium of $20 will be charged on the international gold price, and interbank rates will be used for domestic gold calculations

This development came after the State Bank of Pakistan (SBP) authorized all gold dealers to determine domestic bullion rates using the interbank exchange rate.

This will result in one unified rate across the country, thereby ending disparity and contributing to improved transparency.

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