November 16, 2023 (MLN): Domestic bullion concluded its bullish momentum on Thursday as the price of 24-karat gold fell by Rs500 per tola to settle at Rs214,300.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs183,728, reflecting a loss of Rs428.
While 10-gram 22-karat gold stood at Rs166,452, down by Rs393.
The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,580 and Rs2,211.93 respectively.
Domestic gold prices are influenced by changes in international prices and fluctuations in the local currency's interbank exchange rate.
On the global front, the international spot is currently trading at $1,966.65, up by 0.36% compared to its previous close.
The increase is primarily attributed to expectations that the Federal Reserve’s policy tightening cycle has come to an end, although a higher U.S. dollar kept gains in check.
Despite global gains, local bullion prices experienced a setback as the strengthening of the local currency outweighed the rise in international prices.
The Pakistani Rupee (PKR) is on track to conclude its 17-day-long losing streak against the U.S. Dollar.
Since gold is denominated in U.S. dollars, when the PKR strengthens against the USD, the value of PKR-denominated gold falls.
This upswing follows the staff-level agreement successfully being reached between the International Monetary Fund (IMF) and Pakistani authorities on the first review under Pakistan's Stand-By Arrangement (SBA).
