Domestic gold ends 2-week losing streak, surges Rs1,900 per tola WoW

February 24, 2024 (MLN): Domestic Bullion market broke free from its 2-week long losing streak as the price of 24-karat gold surged by Rs1,900 per tola to Rs215,100 this week.

The Karachi Sarafa Association reported that 10-gram 24-karat gold settled the last trading session of the week at Rs184,414, reflecting a rise of Rs1,629 WoW.

While the price of 10-gram 22-karat gold was reported at Rs169,046 at close.

Last week, gold price in the domestic market dropped by Rs1,100 per tola driven by a decline in international prices.

The hotter-than-anticipated US inflation data last week pushed gold below the $2,000 mark for the first time in two months.

However, international gold witnessed a strong rebound this week driven by increased safe-haven demand stremming from escalating tensions in the Middle East.

International spot gold settled the week at $2,035.38, up by $11.13 or 1.11% WoW, resulting in gains for domestic gold.

The U.S. Dollar Index (DXY), which tracks the value of the greenback against six other top currencies concluded this week in red after five weeks of gains.

"Gold is up primarily on the fact that the U.S. dollar is a little weaker," said Bob Haberkorn, senior market strategist at RJO Futures, as Reuters reported.

"It's a delicate walk right now in the precious metals market, but there is a lot of safe-haven buying despite the rates being as high as they are."

Fed Governor Christopher Waller said on Thursday that he was in "no rush" to cut rates, firming investor bets against U.S. interest rate cuts before June.

As the fluctuation in the domestic currency is one of the crucial factors for determining the domestic gold rate, it is important to mention here that the Pakistani Rupee (PKR) remained releatively flat against the US dollar this week at PKR 279.36 per USD.

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