September 06, 2023 (MLN): Domestic bullion experienced another significant setback as the price of 24-karat gold dropped by Rs10,500 per tola, closing at Rs222,300.
This decline was attributed to the remarkable appreciation of 20 rupees in the Pakistani Rupee (PKR) against the US Dollar in the open market over just the past two trading sessions.
Since gold is denominated in U.S. dollars when the local unit appreciates against the greenback, the value of PKR-denominated gold falls.
Furthermore, the local bullion was influenced by the positive news surrounding the recent meeting between Chief of Army Staff (COAS) Asim Munir and the business community.
During the meeting, COAS Munir highlighted the crucial role of the Special Investment Facilitation Council (SIFC) and emphasized its potential to attract significant investments, estimated at up to $100 billion.
This positive outlook may have boosted investor confidence, reducing the appeal of assets like gold.
According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs190,586 per tola, down by Rs9,002.
While 10-gram 22-karat gold stood at Rs174,704 per tola, depreciating by Rs8,252 compared to the previous close.
The price of silver also dropped in the domestic market, with 24-karat silver falling by Rs100 to close at Rs2,700 per tola and the price of 10-gram 24-karat silver reaching Rs2,315 per tola, falling by Rs85.73.
On the global front, international spot gold remained relatively stable and is currently trading at $1,925.08, down by 0.05% compared to the previous close.
International spot gold chart
Meanwhile, international spot silver is currently trading at $23.30, down by 1.05% on the day.
