Domestic gold tumbles Rs23,300 per tola in 4 days amid robust PKR

September 07, 2023 (MLN): Domestic bullion continued its downward trajectory on Thursday as the price of 24-karat gold dropped by Rs5,800 per tola, closing at Rs216,500.

The plunge in domestic gold prices is attributed to the remarkable appreciation of 27 rupees in the Pakistani Rupee (PKR) against the US Dollar in the open market over just the past few trading sessions.

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

It is pertinent to note that the domestic gold price reached the second-highest level of Rs239,800 per tola on August 31, 2023, while the commodity's all-time high was at Rs240,000 per tola, witnessed on May 10, 2023.

However, after reaching this mark, the commodity lost Rs23,300 per tola in just four trading sessions.

Moreover, the local bullion was influenced by the positive news surrounding the recent meeting between Chief of Army Staff (COAS) Asim Munir and the business community.

During the meeting, COAS Munir highlighted the crucial role of the Special Investment Facilitation Council (SIFC) and emphasized its potential to attract significant investments, estimated at up to $100 billion.

This positive outlook may have boosted investor confidence, reducing the appeal of assets like gold.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs185,614 per tola, sliding by Rs4,972.

Similarly, the price of 10-gram 22-karat gold was noted at Rs170,146 per tola, down by Rs4,558.

The price of silver dropped in the domestic market, with 24-karat silver falling by Rs50 to close at Rs2,650 per tola and the price of 10-gram 24-karat silver reaching Rs2,272 per tola, declining by Rs42.87.

On the global front, international spot gold is currently trading at $1,920.77, up by 0.22% compared to the previous close.

International spot gold chart

Conversely, international spot silver is currently trading at $22.95, down by 0.94% on the day.

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