In a notable reversal, domestic bullion has rebounded from a four-week decline, initiating the current week with a positive trajectory. The price of 24-karat gold has seen a robust surge, ascending by Rs1,500 per tola and reaching Rs215,400.
The Karachi Sarafa Association reported a noteworthy uptick in the 10-gramme 24-karat gold, now standing at Rs184,671, reflecting a gain of Rs1,286 from the preceding day. Meanwhile, the 10-gramme 22-karat gold is reported at Rs169,282.
Contrary to the gold market’s dynamic, silver prices have maintained stability domestically. The 24-karat silver is being traded at Rs2,600 per tola and Rs2,229.08 per 10-gramme.
This positive shift in the domestic gold market is attributed to the rise in international prices. At present, the international spot gold is trading at $2,032.5 [12:42 p.m. PST], exhibiting a 0.7 per cent increase from the closing of the previous session.
Notably, the global market witnessed a second consecutive weekly loss last week, driven by diminishing expectations of a rate cut.
However, the current surge in gold prices is fueled by escalating tensions in the Middle East, prompting an increased demand for safe-haven assets.
This geopolitical development signals a bullish trend for gold, counteracting the pressure on domestic gold caused by the continuous strengthening of the Pakistani Rupee (PKR).
The sudden upturn in international prices has effectively outweighed the market impact of the PKR’s persistent strength.
