May 24, 2024 (MLN): The domestic bullion market suffered losses for the fourth straight session, with the price of 24-karat gold dropping Rs1,800 to Rs240,200 per tola on Friday.
Gold rates were on the spike due to a massive rally in the international market, this prompted gold dealers to underprice the yellow metal by Rs4,000 due to a significant reduction in purchasing power.
However, rates are now being quoted based on the transparent international rate, incorporating the effect of changes in the exchange rate, due to the massive drop this week.
The Karachi Sarafa Association further reported the price of 24-karat gold at Rs205,933 per 10-gram, down by Rs1,543.
Similarly, the price of 22-karat gold was quoted lower at Rs188,772 per 10-gram.
Moreover, silver prices remained unchanged in the domestic market, with 24-karat silver being sold at Rs2,800 per tola and Rs2,400.54 per 10-gram.
On the global front, international spot gold dropped more than 2% or $50 per ounce yesterday. This is on top of a 1.74% fall on Wednesday.
The Federal Reserve's most recent policy meeting indicated officials would keep interest rates higher for longer as they struggle to bring inflation down to target.
Moreover, China’s bullion imports slowed last month as demand in the world’s biggest consumer began to buckle in the face of record prices.
Overseas purchases of physical gold fell to 136 tons in April, a 30% decline from the previous month and the lowest total for the year, according to the latest customs data.
International silver also fell over 2% to $30.13 an ounce yesterday.
