December 11, 2023 (MLN): Domestic bullion faced a slight downside on Monday as the price of 24-karat gold inched down by Rs200 per tola to settle at Rs215,400 per tola.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs184,671, reflecting a loss of Rs171.

While 10-gram 22-karat gold stood at Rs169,282, down by Rs157.

It is crucial to mention that gold investors in the domestic bullion market experienced a major setback last week as the price of 24-karat gold plunged by Rs8,000 per tola, driven by a significant decline in international prices and a strengthened local unit.

The price of silver remained unchanged in the domestic market today, with 24-karat silver and 10-gram 24-karat silver closing at Rs 2,620 and Rs 2,246.21, respectively.

The slight decline in the local market today is attributed to the falling prices in the international market.

International spot gold is currently trading at $1,994.46, marking a 0.50% decrease for the day due to pressure arising from the strengthened dollar and US treasury yields.

This shift occurred as investors adjusted their expectations over the conclusion of the US Federal Reserve's tightening cycle, particularly in response to robust U.S. job data.

The latest data released by the U.S. Bureau of Labor Statistics showed a strengthened labor market, as the unemployment rate for November edged down to 3.7% and the non-farm payrolls (NFP) added a robust 199,000 jobs.

This marks the second consecutive session in which the commodity has traded in the red zone.

Market participants are now awaiting the U.S. consumer price report scheduled for Tuesday, which could provide more information about potential rate cuts ahead of the Fed's statement and Chair Jerome Powell's comments on Wednesday.

In the domestic market, gold prices are also influenced by fluctuations in the local exchange rate.

The Pakistani rupee (PKR) maintained stability during Monday's interbank session to settle at PKR 283.9 per USD, compared to the previous session's closing of PKR 283.87 per USD, reflecting a marginal depreciation of around 3 paisa against the US dollar.

Since gold is denominated in U.S. dollars, when the local unit strengthens against the greenback, the value of PKR-denominated gold falls.

Copyright Mettis Link News

Posted on: 2023-12-11T17:31:52+05:00