Domestic gold price drops by Rs2,400 per tola to Rs211,800

November 09, 2023 (MLN): Domestic Bullion witnessed a major setback on Thursday as the price of 24-karat gold dropped by Rs2,400 per tola to settle today’s session at Rs211,800.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs181,584, reflecting a loss of Rs2,058.

While 10-gram 22-karat gold stood at Rs166,452, down by Rs1,886.

The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,580 and Rs2,211.93 respectively.

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

All the domestic financial markets except metal market were closed today on the occasion of ‘Iqbal Day’.

It is important to mention that the Pakistani Rupee (PKR) marked its thirteenth consecutive loss against the greenback in Wednesday’s trading session.

Domestic gold benefits from the declining value of the local currency as gold is denominated in U.S. dollars and when the PKR weakens against the USD, the value of PKR-denominated gold rises.

Nevertheless, this positive effect was overshadowed by the consecutive decline in international gold prices over three sessions.

International spot gold was on track for a fourth straight day of decline on Thursday as safe-haven demand cooled. However, the price edged up today by 0.12% and is currently trading at $1,952.22.

Similarly, international spot silver is on track to end its three-day losing streak, with the price rising by 0.81% to $22.72.

“Markets continue unwinding the war premiums in this traditional safe-haven asset,” said Exinity chief market analyst Han Tan, as Reuters reported.

“The precious metal has also been unable to capitalize on lower U.S. Treasury yields and the dollar’s resilience has certainly not aided bullion bulls’ cause,” he added.

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