Domestic gold ends another week in red, drops by Rs1,100 per tola WoW

February 17, 2024 (MLN): Domestic bullion continued its decline for the second consecutive week as the price of 24-karat gold plunged by Rs1,100 per tola to Rs213,200 by the end of this week.

The Karachi Sarafa Association reported that 10-gram 24-karat gold settled the last trading session of the week at Rs182,785, reflecting a drop of Rs943 WoW.

While the price of 10-gram 22-karat gold was reported at Rs167,553 at close.

Last week, gold price in the domestic market dropped by Rs1,700 per tola driven by a decline in international prices.

The uncertainty surrounding the continuous delay in election results this week also failed to bolster demand for the safe-haven asset.

However, the primary factor behind the reduced prices in the domestic market was the recorded drop in international prices.

International spot gold settled the week at $2,013.23, down by $11.13 or 0.55% WoW.

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

The American CPI data came as a disappointment for investors after a recent downdraft in price pressures that helped build expectations for rate cuts this year, said Bloomberg.

However, following Wednesday's decline, the international spot gold has witnessed a robust rebound but failed to close the week on a positive note.

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) has snapped its 13-week-long and historic winning streak against the mighty Dollar with a marginal drop of 8 paisa.

Since gold is denominated in U.S. dollars when the PKR depreciates against the U.S. dollar, the value of PKR-denominated gold rises.

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