January 14, 2024 (MLN): Domestic Bullion extended its downturn for the second consecutive week as the price of 24-karat gold dropped by Rs550 per tola to Rs217,450.
The Karachi Sarafa Association reported that 24-karat gold closed the last trading session of the week with a gain of Rs950 per tola.
Moreover, 10-gram 24-karat gold settled the session at Rs186,428, reflecting a gain of Rs814.
While the price of 10-gram 22-karat gold was reported at Rs170,146 at close.
The international spot rate, utilized by the association to calculate local rates, was reported at $2,068 at the close, reflecting a $3 increase compared to last week's closing value.
The escalating concerns over the Middle East conflict placed the safe haven asset into the green zone, however, the gains were capped due to hawkish remarks from Federal Reserve officials.
Despite an uptick being recorded in terms of international rate, the domestic bullion witnessed a downside this week due to the strengthened value of the home currency.
The Pakistani Rupee (PKR) extended its gains against the U.S. Dollar this week by marking its ninth consecutive weekly victory.
In a noteworthy development, the Executive Board of the International Monetary Fund (IMF) has successfully concluded the first review of Pakistan's economic reform program today, which is backed by the IMF's Stand-by Arrangement (SBA).
Consequently, investors' confidence in the economy has been further bolstered, contributing significantly to the upward trend of the PKR against the mighty Dollar.
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.
