Gold price in Pakistan hits Rs218,500 per tola

December 20, 2023 (MLN): Gold prices in the domestic bullion market extended their upward trend on Wednesday, as the price of 24-karat gold increased by Rs900 per tola and settled the session at Rs218,500.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs187,328, reflecting a gain of Rs771.

While the price of 10-gram 22-karat gold stood at Rs171,011, up by Rs707.

Conversely, the price of silver fell in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,650 and Rs 2,271.94, down by Rs20 and Rs17.15 respectively.

Domestic gold is on a steady incline this week, supported by the continual rise in international gold prices.

The international spot gold concluded yesterday's session at $2,040.25, marking a gain of $13 DoD.

The US Federal Reserve's statement over a cumulative rate cut of 75 basis points in 2024 continues to exert pressure on Dollar and treasury yields, ultimately leading to further gains for the metal

However, prices have remained relatively flat today in the international market.

Apart from changes in international prices, the domestic bullion market is 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 a current account surplus of $9 million 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, resulting in net gains for the domestic market.

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