Gold takes a major hit as PKR surges in openmarket

September 05, 2023 (MLN): Domestic Bullion faced a major setback today due to the remarkable 11 rupees appreciation of the Pakistani Rupee (PKR) against the US Dollar in the open market Consequently, the price of 24-karat gold declined to Rs232,800 per tola, falling by Rs6,300.

Since gold is denominated in U.S. dollars when the local unit appreciates against the greenback, the value of PKR-denominated gold falls.

Furthermore, the local bullion was influenced by the positive news surrounding the recent meeting between Chief of Army Staff (COAS) Asim Munir and the business community.

During the meeting, COAS Munir highlighted the crucial role of the Special Investment Facilitation Council (SIFC) and emphasized its potential to attract significant investments, estimated at up to $100 billion.

This positive outlook may have boosted investor confidence, reducing the appeal of assets like gold.

According to the Karachi Sarafa Association, the price of 10-gram 24-karat gold reached Rs199,588 per tola, down by Rs5,402.

While 10-gram 22-karat gold fell to Rs182,956 per tola.

It is worth mentioning that 24-karat gold closed the month of August at Rs239,800 per tola, nearing its all-time high of Rs240,000 and marking a monthly increase of Rs17,600 or 7.92% per tola.

The price of silver also fell in the domestic market, with 24-karat silver depreciating by Rs100 to close at Rs2,800 per tola and the price of 10-gram 24-karat silver closing at Rs2,401 per tola, losing Rs85.74.

On the global front, international spot gold is currently trading at $1,931.77, down by 0.33% compared to the previous close.

International spot gold chart

Meanwhile, international spot silver is currently trading at $23.82.06, down by 0.65% on the day.

Copyright Mettis Link News