December 22, 2023 (MLN): Domestic Bullion recorded substantial gains on Friday as the price of 24-karat gold surged by Rs1,800 per tola and settled the session at Rs219,800.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs188,443, reflecting a gain of Rs1,543.
While the price of 10-gram 22-karat gold stood at Rs172,740, up by Rs1,415
Meanwhile, the price of silver remained flat in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,650 and Rs 2,271.94.
The surge in international gold prices continues to uplift gold prices in the domestic market.
International spot gold is currently trading at $2,055.91, up by 0.48% compared to the previous session’s closing.
Furthermore, international gold is poised for its second consecutive weekly gain due to pressure on the Dollar and U.S. Treasury yields.
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.
In addition to fluctuations in international prices, the domestic gold market is also influenced by changes in the interbank exchange rate of the local currency.
The Pakistani Rupee (PKR) is set to extend its winning streak against the mighty dollar for the sixth consecutive week.
The positivity is attributed to the successful staff-level agreement (SLA) between the International Monetary Fund (IMF) and a current account surplus of $9 million recorded 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 domestic bullion weighed on rising international prices and outweighed the impact of a strengthened Rupee.
