Gold Prices Witness Fourth Consecutive Weekly Decline

In a persistent trend, domestic bullion experienced its fourth consecutive weekly decline as the price of 24-karat gold plummeted by Rs1,400 per tola, reaching Rs213,900.

The Karachi Sarafa Association reported that the week concluded with a Rs300 per tola loss for 24-karat gold in the last trading session. The 10-gram equivalent of 24-karat gold also saw a dip, closing at Rs183,385, reflecting a day-on-day decrease of Rs257.

Moreover, the price of 10-gram 22-karat gold was noted at Rs168,103 at the session's close.

To calculate local rates, the association utilized the international spot rate, which concluded at $2,018.59, indicating an $11.03 reduction compared to the previous week's closing value. This marks the second consecutive weekly loss in the international market, driven by dwindling expectations of a rate cut.

David Meger, Director of Metals Trading at High Ridge Futures, commented on the market's current state, stating, "We are witnessing the gold market consolidating at the moment as the expectations of rate declines aren't quite as soon as the market would like," as reported by Reuters.

In addition to global pressures, the domestic bullion market faced increased strain due to the continuous strengthening of the Pakistani Rupee (PKR) against the greenback. The PKR maintained its unbeaten streak for 11 consecutive weeks, settling at PKR 279.59 with a WoW gain of 30 paise.

Recent Developments in the Domestic Market:

On January 18, 2024, a meeting of Karachi Gold Traders convened under the chairmanship of Qasim Shikarpuri at Karachi Gold Bullion. Participants included members of Karachi Bullion Exchange, representatives of ARY GOLD, and all GOLD LAB owners in Karachi.

During the meeting, all gold traders unanimously decided to establish a joint committee comprising stakeholders to enhance the management of physical gold trading. The primary objective of this committee is to implement effective measures for better gold trading management, including monitoring gold rates.

Furthermore, the committee will play a role in consulting and assisting government institutions in matters related to gold trading.

Moving forward, the meeting strongly condemned negative propaganda regarding gold rates on social media and emphasized the need to counter elements harming the gold industry through such misinformation.