Gold price in Pakistan surges by Rs1,400 per tola

February 02, 2024 (MLN): Domestic bullion recorded substantial gains on Friday as the price of 24-karat gold increased by Rs1,400 per tola to reach Rs217,700.

The Karachi Sarafa Association reported that 10-gram 24-karat gold was at Rs186,643, showing a rise of Rs1,201 from the previous day.

While the price of 10-gram 22-karat gold was reported at Rs171,089.

Meanwhile, silver prices remained stable in the domestic market, with 24-karat silver being sold at Rs2,600 per tola and Rs2,229.08 per 10-gram.

It is pertinent to note that the domestic bullion has started 2024 on a negative note as the price of 24-karat gold dropped by Rs4,500 per tola to Rs215,500 in January.

The prices in the domestic market moved up today amid a continuous rise in international prices.

International spot gold rose for the fourth straight day and concluded yesterday's session with a gain of over $15. 

Currently, the spot rate stands at $2,054.54, on track for the biggest weekly rise since December.

Fed Chair Jerome Powell this week dismissed the idea of lowering interest rates in the spring but voiced confidence that inflation would return to the 2% target, as Reuters reported.

"The remarks from the Fed have not managed to damage the support scenario for gold," said Carlo Alberto De Casa, market analyst at Kinesis Money.

"What can be a problem for gold is only if markets are betting on interest rates being higher for longer, but now the market is sure that the rates are going down this year," he further added.

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