August 18, 2023 (MLN): Domestic bullion continued its momentum on Friday, as 24-karat gold observed an increase of Rs300 per tola to close at Rs225,300.
The Karachi Sarafa Association, a reputable jeweler in the precious metals market, reported that the price of 10-gram 24-karat gold closed at Rs193,158 per tola, reflecting a rise of Rs257.
While 10-gram 22-karat gold closed the day at Rs177,063 per tola.
The appreciation can be attributed to the weakening of the Pakistani rupee (PKR), as the domestic currency depreciated by 7.29 rupees or 2.46% over the week against the greenback.
Since gold is denominated in U.S. dollars when the PKR depreciates against the U.S. dollar, the value of PKR-denominated gold rises.
On the other hand, the price of silver remained unchanged in the domestic market, with 24-karat silver closing at Rs2,750 per tola and 10-gram 24-karat silver settling at Rs2,358 per tola.
On the global front, international spot gold is currently trading at $1,889.75, witnessing a meager rise of 0.07%.
“Ultimately, the medium-term outlook for gold is set to be influenced by Powell’s highly anticipated speech at Jackson Hole. In the meantime, $1,900 remains a key level of interest,” said Lukman Otunuga, senior research analyst at FXTM, as Reuters reported.
“Sustained weakness below the $1,900 level may open a path toward $1,870,” he added.
Minutes from the most recent Federal Reserve meeting showed most members continued to see “significant upside risks to inflation”. Traders expect the Fed to hold rates in the 5.25-5.5% range until 2024, according to CME’s Fedwatch tool.
Meanwhile, international spot silver is currently trading at $22.69, rising by 0.17% on the day.
