Reversal trend: Gold price settles at Rs216,100 per tola, erasing recent upsurge

In Wednesday’s trading session, the domestic gold market witnessed a reversal, wiping out gains from the previous day. 

The price of 24-karat gold in Pakistan experienced a notable decline, dropping by Rs300 per tola to reach Rs216,100. 

The Karachi Sarafa Association reported that the price of 10-gramme 24-karat gold also reflected this downturn, standing at Rs185,271 with a decline of Rs257. 

Similarly, the price of 10-gramme 22-karat gold experienced a decrease, reaching Rs169,832, down by Rs235.

Silver prices followed suit, with 24-karat silver selling at Rs 2,650 per tola and Rs 2,271.94 per 10-gram. 

The decline in the domestic market is attributed to a slight dip in international prices and the persistent strengthening of the home currency.

The international spot gold market observed a $3 drop when the Karachi Sarafa Association released the local gold rates. 

This decrease is attributed to a stronger US dollar and elevated Treasury yields. Market participants are eagerly awaiting the US inflation report scheduled for Thursday, anticipating insights into the US Federal Reserve’s stance on a potential policy shift.

Furthermore, the ongoing appreciation of the Pakistani rupee (PKR) against the greenback continues to exert additional pressure on the domestic gold market. 

In the preceding session, the PKR secured its fifth consecutive victory against the US dollar, breaking a 13-day upside streak. 

The dynamics of international and domestic factors are shaping the trajectory of the gold market, making it a focal point for investors and analysts alike.