August 25, 2023 (MLN): Domestic bullion regained its bullish momentum with 24-karat gold appreciating by Rs2,900 per tola on Friday, to close the trading session at Rs235,500.
According to the Karachi Sarafa Association, the cost of 10 grams of 24-karat gold was recorded at Rs201,903 per tola, reflecting an increase of Rs2,486 per tola compared to the previous close.
Similarly, 10-gram 22-karat gold also witnessed a Rs2,279 per tola increase to close at Rs185,078.
The appreciation can be attributed to the downward trajectory of the Pakistani rupee (PKR) as the local unit lost 5.22 rupees or 1.74% over the week against the greenback.
Moreover, political uncertainty surrounding the general elections is also causing turbulence in local markets.
Consequently, investors' attention might be shifting toward risk-off assets like gold.
The price of silver rose in the domestic market, with 24-karat silver falling by Rs50 to close at Rs2,850 per tola and the price of 10-gram 24-karat silver settled at Rs2,443 per tola, rising by Rs42.87
On the other hand, international spot gold is currently trading at $1,919.03, by 0.18% as compared to the previous close.
Gold steadied on Friday as it heads for its best week since mid-July, with support from a pullback in the U.S. bond yields before Federal Reserve Chair Jerome Powell’s keynote remarks at the Jackson Hole symposium, as Reuters reported.
Benchmark 10-year Treasury yields evaporated all weekly gains, supporting non-yielding gold, although the U.S. dollar heading for its six straight weekly rises kept gains in check.
“The price appreciation could be the consequence of some opportunistic buying after having fallen from close to around $2,000 per ounce in July to around $1,900,” said Edward Gardner, commodities economist at Capital Economics.
Two Fed officials on Thursday noted a good chance that no more rate increases will be needed while tentatively welcoming a jump in bond market yields, as momentum was also building among European Central Bank policymakers for a pause in its rate hikes amid deteriorating growth prospects.
Meanwhile, international spot silver is currently trading at $24.24, marking an increase of 0.47% on the day.
Copyright Mettis Link News
Posted on: 2023-08-25T17:37:00+05:00
