Gold price increases by Rs1,000 per tola to Rs212,800

November 14, 2023 (MLN): Domestic bullion continued its upward trend on Tuesday as the price of 24-karat gold increased by Rs1,000 per tola to settle at Rs212,800.

The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs182,442, reflecting a gain of Rs858.

While 10-gram 22-karat gold stood at Rs166,452, up by Rs786.

The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,580 and Rs2,211.93 respectively.

Domestic gold prices are influenced by changes in international prices and fluctuations in the local currency's interbank exchange rate.

Accordingly, this increase in bullion prices is attributed to the declining value of the Pakistani Rupee (PKR) and a slight uptick in international prices.

The PKR is on course for its sixteenth consecutive loss against the USD.

The pressure resulting from the gap between the demand and supply of dollars still prevails over the market and the local unit is yet to face another tough session against the USD.

Since gold is denominated in U.S. dollars, when the PKR weakens against the USD, the value of PKR-denominated gold rises.

On the global front, International spot gold inched up today by 0.05%, currently trading at $1,946.99.

Similarly, international spot silver traded in the green zone, experiencing a 0.58% increase on the day and currently trading at $22.03.

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