Gold prices in Pakistan take a dip

WEB DESK: In the latest market developments, domestic gold prices wrapped up their bullish run on Thursday, witnessing a dip in the value of 24-karat gold by Rs500 per tola, settling at Rs214,300.

The Karachi Sarafa Association noted that the 10-gramme 24-karat gold marked the end of today’s session at Rs183,728, showing a decline of Rs428, while the 10-gramme 22-karat gold closed at Rs166,452, down by Rs393.

Contrary to gold, the price of silver remained steady in the domestic market. Both 24-karat silver and 10-gramme 24-karat silver concluded at Rs2,580 and Rs2,211.93, respectively.

It’s important to recognise that domestic gold prices are intricately linked to fluctuations in international prices and the local currency’s interbank exchange rate.

On the global stage, the international spot is presently trading at $1,966.65, reflecting a 0.36 per cent increase compared to its previous close.

This uptick is largely attributed to the anticipation that the Federal Reserve’s policy tightening cycle has reached its conclusion, although gains are tempered by a stronger US dollar.

Read more: Pakistani rupee finally gains against dollar

Despite the positive global trend, local bullion prices faced a setback due to the strengthening of the local currency, which outweighed the rise in international prices.

The Pakistani rupee (PKR) is poised to end its 17-day-long losing streak against the US dollar.

It is noteworthy that since gold is denominated in US dollars, a stronger PKR against the USD leads to a decrease in the value of PKR-denominated gold.

This positive shift in the currency is concurrent with the successful staff-level agreement reached between the International Monetary Fund (IMF) and Pakistani authorities on the first review under Pakistan’s Stand-By Arrangement (SBA).