Domestic gold snaps losing streak, gains 2,100 per tola WoW

February 04, 2024 (MLN): Domestic bullion broke free from its four-week-long losing streak as the price of 24-karat gold surged by Rs2,100 per tola to Rs216,000 this week.

The Karachi Sarafa Association reported that 10-gram 24-karat gold settled the last trading session of the week at Rs185,185, reflecting a rise of Rs1,800 WoW.

While the price of 10-gram 22-karat gold was reported at Rs169,753 at close.

This strong rebound witnessed in the domestic rates this week is attributed to the sudden comeback in international prices.

International spot gold soared by around $21 WoW and settled at $2,039.75.

It is pertinent to note that the spot rate climbed nearer a one-month high on Thursday after data showed U.S. weekly jobless claims rose last week.

Moreover, the Fed kept interest rates unchanged and dampened the probability of a near-term cut in interest rates.

However, the gains for the local gold were capped during the week due to the continuous appreciation of the Pakistani Rupee (PKR) against the greenback.

On the currency front, the PKR's unbeaten streak against the greenback extended to 12 consecutive weeks as the domestic unit settled at PKR 279.41 with a gain of 18.45 paise WoW.

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