Decline Continues: 24-Karat Gold Loses Rs1,800 per Tola in Domestic Markets
24-karat gold stood at Rs220,000 per tola, marking a significant increase from the closing price of Rs183,900 per tola in the Same Period Last Year (SPLY).
Karobar
The domestic bullion market faced yet another challenging day, witnessing a decline in the price of 24-karat gold by Rs1,800 per tola, settling at Rs218,200.
According to the Karachi Sarafa Association, the 10-gram 24-karat gold price reported a loss of Rs1,543, reaching Rs187,071. Similarly, the price of 10-gram 22-karat gold dropped to Rs172,897, reflecting a decline of Rs1,415.
Despite domestic bullion investors enjoying substantial returns in 2023, with a remarkable 19.63% yield for the year, the recent downturn is attributed to the global decrease in gold prices and the strengthening of the domestic currency.
The decline in the domestic bullion market can be traced to the international spot gold market's fourth consecutive loss, closing with a decrease of $17.78. Although the spot price currently shows a modest 0.33% increase, it fails to offset the losses from the previous session, resulting in a negative impact on the domestic market.
Adding to the pressure is the strengthening Pakistani Rupee (PKR), poised for another daily victory against the U.S. Dollar, currently trading at PKR 281.69/281.94 per USD. The interplay between the domestic gold price and the local Rupee reveals that as the home currency appreciates against the greenback, the value of gold experiences a corresponding fall.
