Domestic gold rebounds, appreciates by Rs5,500 per tola to Rs205,000

October 11, 2023 (MLN): Domestic bullion rebounded on Wednesday after witnessing a major setback in yesterday's session when the market reopened, with 24-karat gold appreciating by Rs5,500 per tola to reach Rs205,000.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold increased by Rs4,715 to Rs175,754 per tola at closing.

While 10-gram 22-karat gold stood at Rs161,108 per tola, up by Rs4,322 compared to the previous close.

The rate of the 24-karat gold in Karachi is around Rs1,000 per tola less compared to Lahore, Peshawar, and Quetta, where the metal closed at Rs206,000.

It is important to mention that the local bullion market reopened after 27 days following a crackdown on gold dealers, which caused panic in the bullion market.

The appreciation in the Pakistani Rupee (PKR) caused the general public to rush to accumulate gold while it was available at lower rates. Thus, the bullion did not release rates.

To note, today's closing marked a significant milestone for the Pakistani Rupee (PKR) as it extended its impressive streak to 25 consecutive trading sessions of gains against the US dollar, setting a historic record.

Theoretically, since gold is denominated in U.S. dollars when the local unit appreciates against the greenback, the value of PKR-denominated gold falls.

However, the significant comeback of the metal is attributed to the appreciation in the international prices.

On the global front, international spot gold has risen by 0.58% compared to the previous close and is currently trading at $1,871.30.

It is important to mention that in a bid to enhance transparency within the gold market, the State Bank of Pakistan (SBP) has now authorized all gold dealers to calculate domestic bullion rates using the interbank exchange rate.

Additionally, the Federal Ministry of Industries and Production has established a 15-member advisory council that will review existing policies related to the gold trade, standards, certification, and value addition.

The price of silver remained unchanged in the domestic market, with 24-karat silver closing at Rs2,500 per tola and 10-gram 24-karat silver standing at Rs2,143 per tola.

Meanwhile, international spot silver is trading at $22.03, up by 0.93% on the day.

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