Gold prices remain stable at Rs232,600 per tola

August 25, 2023 (MLN): Domestic bullion remained stable on Thursday, with 24-karat gold closing at Rs232,600 per tola.

The Karachi Sarafa Association, a reputable jeweler in the precious metals market, reported that the price of 10-gram 24-karat gold settled at Rs199,417 per tola.

The price of 10-gram 22-karat gold also remained unchanged and was quoted at Rs 182,799 per tola.

It is worth mentioning that gold prices appreciated significantly during the earlier trading sessions of the week as the Pakistani rupee (PKR) depreciated significantly against the greenback.

The local unit continued its descent and breached the psychological level of 300 against the USD.

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

Furthermore, political uncertainty surrounding the general elections is also causing turbulence in local markets. Consequently, investors might be preferring safe-haven assets like gold.

Similarly, the price of 24-karat silver closed at Rs2,800 per tola and the price of 10-gram 24-karat silver settled at Rs2,401 per tola.

On the other hand, international spot gold is currently trading at $1,913.78, down by -0.14% on the day.

Gold prices edged lower on Friday as the U.S. dollar reclaimed a 2-1/2-month peak, but the metal was headed for its best week in six ahead of a speech by Federal Reserve Chair Jerome Powell that could offer clues on the interest rate outlook, as Reuters reported.

Gold has risen about 1.3% so far in the week, which could be its first week of gains this month, as prices climbed to their highest since Aug. 10 on Thursday.

“The false break of $1,900 has provided a nice rally to the $1,920 area, but Powell has the ability to send gold back down to $1,900 as much as he could send it to $1,940,” said Matt Simpson, a senior analyst at City Index.

Meanwhile, international spot silver is currently trading at $24.04, down by -0.35% on the day.

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