Domestic gold ends two-week upward trend, loses Rs2700 per tola this week

March 16, 2024 (MLN): The domestic bullion market snapped its two-week-long upward journey as the price of 24-karat gold dropped by Rs2,700 per tola this week to close at Rs227,500.

The Karachi Sarafa Association reported that 10-gram 24-karat gold settled the last trading session of the week at Rs195,054, reflecting a drop of Rs2,306 WoW.

While the price of 10-gram 22-karat gold also fell to Rs178,791 at the session's close.

Last week, gold prices in Pakistan witnessed a strong bullish momentum, delivering massive returns to local investors as the international spot gold reached a new all-time high.

The primary benchmark of the domestic gold market, 24-karat gold spiked nearly Rs10,000 per tola this week, reaching Rs230,200, a price level not witnessed since September 2023.

However, with prices retreating in the international market, domestic gold experienced a setback this week.

International spot gold wrapped the week at a closing rate of $2,156.01, with a loss of over $23.

This marked the first weekly loss witnessed by the commodity in four weeks as investors lowered expectations of a U.S. interest rate cut on sluggish price data.

Further pressure came to the domestic gold market as the Pakistani Rupee (PKR) settled another week strengthening against the mighty Dollar.

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

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