February 10, 2024 (MLN): After snapping its four-week-long losing streak in the previous week, the domestic bullion has once again entered the red zone as the price of 24-karat gold plunged by Rs1,700 per tola to Rs214,300 by the end of this week.
The Karachi Sarafa Association reported that 10-gram 24-karat gold settled the last trading session of the week at Rs183,728, reflecting a drop of Rs1,457 WoW.
While the price of 10-gram 22-karat gold was reported at Rs168,416 at close.
Last week, gold price in the domestic market surged by Rs2,100 per tola driven by the surge in international prices.
The uncertainty regarding a delay in election results failed to uplift the demand for the safe haven asset as in the last trading session, domestic gold faced the majority of its weekly loss.
However, the primary factor behind the reduced prices in the domestic market was the recorded drop in international prices.
International spot gold settled the week at $2,024.36, down by $15.39 or 0.75% WoW.
Investors' preference for international gold diminished this week as the treasury yields elevated in the market with investors awaiting the U.S. inflation data for more clues on the timing of the Federal Reserve's interest rate cuts.
Furthermore, the continuous appreciation of the Pakistani Rupee (PKR) against the USD was another crucial reason for the drop in domestic prices.
The PKR's unbeaten streak against the greenback extended to 13 consecutive weeks as the domestic unit settled at PKR 279.28 with a gain of 12.88 paisa WoW.
