December 15, 2023 (MLN): Gold prices in Pakistan saw a slight increase on Friday, as the price of 24-karat gold rose by Rs300 per tola and settled the session at Rs218,600.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs187,414, reflecting a gain of Rs257.

While the price of 10-gram 22-karat gold stood at Rs171,796, up by Rs235.

The price of silver also increased in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,670 and Rs 2,289.09.

It is crucial to note that the domestic bullion market witnessed a robust rebound in yesterday's session, following five consecutive losses that resulted in a cumulative loss of Rs6,300 for the 24-karat gold.

The increase was attributed to a rally in international markets, which, in turn, persisted today and resulted in gains for the domestic market.

International spot gold is currently trading at $2,041.17, up by 0.26% on the day.

International gold continues to gain on the US Federal Reserve's statement regarding a cumulative rate cut of 75 basis points in 2024.

As a result, the U.S. treasury yields and the dollar remained under pressure.

A weaker dollar makes gold more affordable for holders of other currencies, exerting a positive impact on gold prices.

Similarly, lower bond yields also impose a positive impact on the metal as they reduce the opportunity cost of holding the safe-haven asset.

In the domestic market, gold prices are also influenced by fluctuations in the local exchange rate.

The Pakistani rupee (PKR) is on track for another daily win against the U.S. Dollar due to the positivity arising from the successful staff-level agreement (SLA) between the International Monetary Fund (IMF) and Pakistan and the reduction in the current account deficit for November.

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

However, the surge in the international market overshadowed the appreciation in the local unit, ultimately leading to gains for the domestic bullion market.

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Posted on: 2023-12-15T15:18:43+05:00