Domestic gold price dips slightly to settle at Rs214,000 per tola

November 07, 2023 (MLN): Domestic bullion witnessed a relatively stable session on Tuesday as the price of 24-karat gold inched down by Rs200 per tola to settle at Rs214,000.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs183,470, reflecting a loss of Rs172.

While 10-gram 22-karat gold stood at Rs166,452.

The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,550 and Rs2,186.21 respectively.

Domestic gold prices are influenced by changes in international prices and fluctuations in the local currency's interbank exchange rate.

The Pakistani Rupee (PKR) is on track to mark its twelfth consecutive daily loss against the U.S. Dollar.

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

However, the decline in international prices outweighed the impact of PKR’s depreciation, leading to a slight decrease in prices.

The international spot is currently trading at $1,966.09, down by 0.61% compared to its previous close.

The pressure on international prices is attributed to a stronger dollar and reduced preference for safe-haven assets, while investors awaited comments from Federal Reserve officials.

This downturn also affected international silver prices, with international spot silver down by 1.79% on the day, trading at $22.62.

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