Domestic gold extends decline, drops further by Rs1,200 per tola

January 05, 2024 (MLN): Domestic bullion maintained its downward trajectory on Friday as the price of 24-karat gold in Pakistan dropped by Rs1,200 per tola to Rs217,000.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold was at Rs186,043, reflecting a loss of Rs1,028.

While the price of 10-gram 22-karat gold stood at Rs170,539, down by Rs2,358.

This marks the third consecutive loss witnessed by the domestic metal market due to a continuous dip in international prices and a relatively strengthened home currency.

International spot gold snapped its four-day-long losing streak by closing yesterday’s session with a marginal increase of 0.11%.

However, pressure has once again taken hold in the gold market and spot gold is currently down by 0.26% on the day to trade at $2,038.08.

Moreover, additional strain came today as the Pakistani Rupee (PKR) is on track to record another daily win against the U.S. Dollar, currently trading at PKR 281.6/281.9 per USD.

The relationship between the domestic gold price and the local Rupee is that the metal is denominated in U.S. dollars and when the home currency appreciates against the greenback, the value of gold falls.

It is crucial to mention that domestic bullion investors have joyed magnificent investment returns for 2023 as the yellow metal has delivered an impressive 19.63% yield for the year.

The 24-karat gold concluded 2023 at Rs220,000 per tola compared to the closing price of Rs183,900 per tola in the Same Period Last Year (SPLY).

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