On Tuesday, the price of gold experienced a further decline, with 24-karat gold witnessing a decrease of Rs1,800, settling at Rs213,600 per tola.  

The Karachi Sarafa Association indicated that the closing rate for 10 grammes of 24-karat gold in today’s session was Rs183,128, reflecting a loss of Rs1,543.  

Simultaneously, 10 grammes of 22-karat gold registered a decline to Rs167,867, down by Rs1,415. 

Last week, gold investors in the domestic bullion market faced a significant setback when the price of 24-karat gold plummeted by Rs8,000 per tola.  

This drop was attributed to a notable decrease in international prices and the strengthening of the local currency. 

In contrast, the price of silver remained stable in the domestic market today, with 24-karat silver and 10 grammes of 24-karat silver closing at Rs2,600 and Rs2,229.08, respectively.  

The downturn in the local market is linked to the ongoing decline in international prices. 

The international spot gold market experienced a 1.04 per cent decrease this week, currently standing at $1,994.46.  

This decline is influenced by the pressure stemming from a stronger dollar and increased US Treasury yields, marking the second consecutive session in which the commodity has traded in the red zone. 

Market participants are eagerly anticipating the US consumer price report scheduled for 05:30 pm PST today.  

This report could offer valuable insights into potential rate cuts ahead of the Federal Reserve’s statement and Chair Jerome Powell’s comments on Wednesday. 

In the domestic market, gold prices are also susceptible to fluctuations in the local exchange rate.  

Rupee remains stable against US dollar

During yesterday’s interbank session, the Pakistani rupee (PKR) maintained stability, settling at PKR 283.9 per USD, representing a marginal depreciation of around 3 paisa against the US dollar compared to the previous session’s closing of PKR 283.87 per USD.  

As gold is denominated in US dollars, a strengthening local unit contributes to a decrease in the value of PKR-denominated gold.