Domestic gold shines bright, up by Rs2,200 per tola

November 17, 2023 (MLN): Domestic bullion rebounded strongly on Friday as the price of 24-karat gold soared by Rs2,200 per tola to settle at Rs216,500.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs185,614, reflecting a gain of Rs1,886.

While 10-gram 22-karat gold stood at Rs166,452, up by Rs3,694.

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.

The surge in international prices resulted in gains for the local bullion in today’s session.

International gold extended its gains from the previous trading session and is on course for its first weekly gain in three weeks.

International spot gold is up by 0.55% on the day and is currently trading at $1,992.5.

The market's anticipation that the Federal Reserve has concluded its policy tightening cycle has put pressure on the dollar and treasury yields, consequently benefiting gold prices.

On the currency front, the Pakistani Rupee (PKR) appreciated by 88 paisa against the greenback to conclude today’s session.

This upswing follows the staff-level agreement successfully being reached between the International Monetary Fund (IMF) and Pakistani authorities on the first review under Pakistan's Stand-By Arrangement (SBA).

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

However, the impact of rising international prices outshined the appreciation in the PKR, ultimately leading to gains for the local market.

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