October 25, 2023 (MLN): Domestic bullion witnessed a slight downturn on Wednesday as the price of 24-karat gold decreased by Rs750 per tola to Rs208,450.
The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold went down by Rs643 to Rs178,712 at closing.
While 10-gram 22-karat gold stood at Rs163,820, down by Rs589 compared to the previous close.
The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,550 and Rs2,186.21 respectively.
On the global front, international spot gold inched down by 0.04% and is currently trading at $1970.14.
The calculation for domestic gold indicated that the $20 premium was factored into the international spot gold price and the interbank exchange rate was utilized to determine domestic bullion rates.
To recall, the president of the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) reached an agreement with all provinces to charge a premium of $20 on top of the international gold price for unified domestic gold rate calculations.
The rally in international prices has cooled as demand for safe havens decreased due to diplomatic efforts over the weekend aimed at reducing conflicts between Israel and Hamas. This reduced investors' appetite for safe-haven assets.
Investors are keeping a close watch on the Middle East war as world leaders pushed for either a pause or ceasefire in fighting between Israel and Hamas in the Gaza Strip so that humanitarian aid could be delivered to besieged Palestinian civilians, as Reuters reported.
Markets are also eagerly awaiting the release of the U.S. GDP numbers for the third quarter on Thursday and the PCE price index on Friday ahead of the Federal Reserve’s policy decision next week.
The dollar index eased while benchmark U.S. 10-year Treasury yields inched lower as investors bought into a recent sell-off amid concerns about the economic impact of higher borrowing costs.
Meanwhile, the international spot silver is down by 0.75% on the day and is currently trading at $22.75.
Copyright Mettis Link News
Posted on: 2023-10-25T14:56:32+05:00
