April 28, 2024 (MLN): The domestic bullion market snapped its winning journey this week as the price of 24-karat gold dropped by Rs7,800 per tola to close at Rs244,400.

The Karachi Sarafa Association reported the price of 24-karat gold at Rs209,534 per 10-gram, down Rs6,687 WoW.

Similarly, the price of 22-karat gold was quoted lower this week at Rs192,072 per 10-gram.

Moreover, silver prices also fell in the domestic market, with 24-karat silver closing at Rs2,650 per tola and Rs2,271.94 per 10-gram.

This week has been full of dumps and ups for the gold market due to fluctuations in Middle East tensions and expectations of rate cuts.

The yellow metal has witnessed a massive rally backed by China's central bank building its reserves of gold and the rising geopolitical tensions.

Due to the current war situation, analysts have termed gold being a geopolitical trade rather than a monetary policy trade.

However, the conflict between Iran and Israel cooled down this week after Iran's government did not hype Israel's response attack much, reducing premiums on the yellow metal.

Later on, a bullish push came to the market on hopes that the Fed would keep rates up after U.S. inflation rose modestly and costs for housing and utilities surged.

Regardless, the losses faced due to easing war tensions weighed over the market and resulted in international spot gold ending its longest 7-day winning streak since January 2023, down by 2.26% or over $54 per ounce in a week.

On the domestic front, local gold got some support from the home currency as it witnessed a slight drop against the mighty dollar this week.

The Pakistani rupee (PKR) lost around 8 paisa against the US Dollar this week and settled at PKR 278.39 per USD, compared to the previous week's closing of PKR 278.31 per USD.

Since gold is denominated in U.S. Dollar terms, when PKR depreciates against the greenback, the value of PKR-denominated gold rises.

Copyright Mettis Link News

Posted on: 2024-04-28T15:08:59+05:00