Gold price in Pakistan surges by Rs2,200 per tola

December 28, 2023 (MLN): Domestic Bullion extended its rally on Thursday as the price of 24-karat gold surged by Rs2,200 per tola to Rs222,800.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold was at Rs191,015, reflecting a gain of Rs1,886.

While the price of 10-gram 22-karat gold stood at Rs175,097.

To note, during the current calendar year, the intraday price of 24-karat gold was the lowest on October 04, 2023, which was Rs188,400, while the highest price during the year was recorded on September 02 of Rs242,700 per tola.

The recent gain in domestic bullion comes on the back of a surge in international gold prices with the spot spot holding its rally after closing at another all-time high yesterday amid strong demand for Treasuries signaling investors’ betting on loosening monetary policy in 2024.

US bond yields dropped yesterday to their lowest level since July amid swaps markets pricing in nearly 90% chance of an interest rate cut by March.

A lower bond yield means a lower opportunity cost for holding zero-yielding gold, which is bullish for gold.

Spot gold is currently trading at $2,074.1, up 14.46% this year, and is on track for its first yearly gain in three years.

On the other hand, the price of silver remained unchanged, with 24-karat silver and 10-gram 24-karat silver being sold at Rs2,680 and Rs 2,297.66.

Globally, international spot silver is trading at $24.28, down by 0.02% on the day.

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 to the 12th straight session against the US dollar, currently trading at PKR 281.87/282.07 per USD.

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