24-karat gold rate surpasses Rs218,000 per tola

WEB DESK: Gold prices in the domestic bullion market continued their upward trajectory on Wednesday.

The 24-karat gold witnessed a notable surge, climbing by Rs900 per tola, ultimately settling the session at Rs218,500.

According to the Karachi Sarafa Association’s latest report, the 10-gramme 24-karat gold recorded a closing figure of Rs187,328 today, reflecting a substantial gain of Rs771.

Similarly, the price of 10-gramme 22-karat gold stood at Rs171,011, marking an increase of Rs707.

Conversely, silver prices experienced a dip in the domestic market. The 24-karat silver and 10-gramme 24-karat silver closed at Rs2,650 and Rs2,271.94, respectively, reflecting a decline of Rs20 and Rs17.15.

This week, domestic gold maintained its steady ascent, mirroring the ongoing surge in international gold prices. The international spot gold concluded yesterday’s session at $2,040.25, marking a gain of $13 day-over-day.

The recent statement from the US Federal Reserve, indicating a cumulative rate cut of 75 basis points in 2024, continues to exert pressure on the dollar and Treasury yields.

This, in turn, contributes to further gains for the precious metal. However, today, international gold prices have remained relatively stable.

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In addition to global dynamics, the domestic bullion market is also influenced by fluctuations in the local exchange rate.

The Pakistani rupee (PKR) is poised for another daily victory against the US dollar, propelled by the positive outcome of the staff-level agreement (SLA) between the International Monetary Fund (IMF) and a current account surplus of $9 million for November.

As gold is denominated in US dollars, the appreciation of the Pakistani rupee against the greenback typically results in a decrease in the value of PKR-denominated gold.

However, the surge in the international market has overshadowed the local currency’s appreciation, leading to overall gains for the domestic market.