January 03, 2024 (MLN): Domestic Bullion took a major hit on Wednesday as the price of 24-karat gold dropped by Rs1,300 per tola to Rs220,000.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold was at Rs188,614, reflecting a loss of Rs1,115.
While the price of 10-gram 22-karat gold stood at Rs172,897, down by Rs1,021.
It is crucial to mention that domestic bullion investors have joyed magnificent investment returns for 2023 as the yellow metal has delivered an impressive 19.63% yield for the year.
The 24-karat gold concluded 2023 at Rs220,000 per tola compared to the closing price of Rs183,900 per tola in the Same Period Last Year (SPLY).
The recent decline in domestic bullion is attributed to the decrease in international gold prices and the strengthening of the domestic currency.
International prices closed the first trading session of 2024 in the red zone, marking the third consecutive decline.
Although spot prices edged up today, the gains were not significant enough to overcome the decline witnessed in the previous session, ultimately resulting in losses in the domestic market.
Moreover, further pressure was exerted today as the Pakistani Rupee (PKR) is back on track to record a daily win against the U.S. Dollar, currently trading at PKR 281.57/281.97 per USD.
The relationship between the domestic gold price and the local Rupee is that the metal is denominated in U.S. dollars and when the home currency appreciates against the greenback, the value of gold falls.
