Drop in Domestic Gold Prices to Rs214,700 per Tola Reflects International Trends
Silver maintained its stability in the domestic market, with 24-karat silver selling at Rs2,600 per tola and Rs2,229.08 per 10-gram.
Karobar
The week kicked off with a dip in domestic bullion, witnessing a decline in the price of 24-karat gold by Rs600 per tola, settling at Rs214,700. The Karachi Sarafa Association reported a session close for 10-gram 24-karat gold at Rs184,074, reflecting a day-on-day loss of Rs514. Meanwhile, the price of 10-gram 22-karat gold concluded at Rs168,731.
It is noteworthy that domestic gold experienced a significant setback in the preceding week, with a Rs2,150 per tola drop. This decline was attributed to the downward trend in international prices and the ongoing strengthening of the local currency.
International gold faced its most challenging week in the past six weeks, primarily influenced by diminishing expectations of a rate cut. As of 03:17 pm PST, spot gold is trading at $2,022.73 with a daily loss of $7.01.
Furthermore, the appreciation of the Pakistani Rupee against the U.S. Dollar added to the losses in the domestic gold market. The inverse relationship between the domestic gold price and the local Rupee is evident, with the metal denominated in U.S. dollars; as the home currency strengthens against the greenback, the value of gold declines.
Recent Developments in the Domestic Market
On January 18, 2024, a meeting of Karachi Gold Traders was convened at Karachi Gold Bullion under the chairmanship of Qasim Shikarpuri. The gathering included all members of Karachi Bullion Exchange, representatives of ARY GOLD, and GOLD LAB owners from Karachi.
The consensus among gold traders led to the formation of a joint committee comprising all stakeholders. This committee aims to enhance the management of physical gold trading and, particularly, gold rates. Additionally, it will collaborate with government institutions, providing consultation and assistance in these matters.
Addressing concerns about negative propaganda regarding gold rates on social media, the traders strongly condemned such actions. The emphasis was on suppressing elements that harm the gold industry through detrimental propaganda.
