December 29, 2023 (MLN): Domestic Bullion witnessed a major setback on Friday as the price of 24-karat gold dropped by Rs1,900 per tola to Rs220,900.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold was at Rs189,386, reflecting a loss of Rs1,629.

While the price of 10-gram 22-karat gold stood at Rs173,604, down by Rs1,493.

To note, during the current calendar year, the intraday price of 24-karat gold was the lowest on October 04, 2023, which was Rs188,400, while the highest price during the year was recorded on September 02 of Rs242,700 per tola.

The recent decline in domestic bullion follows the conclusion of a four-day upturn in international gold prices.

In yesterday's trading session, international spot gold experienced a reversal after reaching a new all-time high, driven by strong rebounds in yields and the Dollar.

It is important to recall that US bond yields slid to their lowest level since July due to strong investor bets on a 2024 monetary policy easing.

A lower bond yield means a lower opportunity cost for holding zero-yielding gold, which is bullish for gold.

Spot gold is currently trading at $2,066.71, up 13.32% this year, and is on track for its first yearly gain in three years.

On the domestic front, the price of silver remained unchanged, with 24-karat silver and 10-gram 24-karat silver being sold at Rs2,680 and Rs 2,297.66.

Globally, international spot silver is trading at $23.71, down by 1.09% on the day.

In addition to fluctuations in international prices, the domestic gold market is also influenced by changes in the interbank exchange rate of the local currency.

The Pakistani Rupee (PKR) is set to snap its 12-day-long winning streak against the US dollar, currently trading at PKR 282.25/282.5 per USD.

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Posted on: 2023-12-29T15:02:50+05:00