May 12, 2023 (MLN): In the wake of Imran Khan's arrest being declared illegal, safe haven assets experienced a decline as political conditions improved, with 24-karat gold closing at Rs230,800, down significantly by Rs6,500.
The wild swings in domestic bullion continue to be influenced by unforeseen events and shifting political landscapes.
Just two days ago, the price of gold soared by a staggering Rs10,000 following the news of PTI chairman Imran Khan's arrest. Investors reacted anxiously to the political turmoil, seeking the safe haven of gold.
However, the tides turned yesterday as Khan was released, signaling a slight improvement in the political conditions.
This significant drop suggests that the market is recalibrating itself in response to the recent developments, albeit with a cautious optimism.
Meanwhile, the prices of other commodities witnessed swings as well.
In line with the prevailing gold trend, the prices of silver in the domestic market experienced a significant decline, plummeting by a substantial 9.68% to close at Rs2,800.
Additionally, the price of 10-gram 24-karat gold reaching Rs197,874, down by Rs5,573, as reported by the Karachi Sarafa Association.
10-gram 22-karat gold stood at Rs181,384, falling by Rs5,109.
On the other hand, international spot gold is currently trading at $2,009.03, down -0.28% on the day.
International spot silver fell an additional 1.2% following a huge 4.81% decline in the previous session and is currently trading at $23.88.
