The domestic bullion market commenced the week with robust performance, witnessing a noteworthy surge in the price of 24-karat gold, which rose by Rs1,100 per tola to reach Rs217,600.

The Karachi Sarafa Association reported that in three last session, the price of 10-gramme 24-karat gold closed at Rs186,557, reflecting a gain of Rs943, while 10-gramme 22-karat gold stood at Rs171,010, experiencing an increase of Rs864.

It’s worth noting that the local gold prices had risen by Rs1,400 per tola last week, primarily influenced by the upward trend in international prices. 

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The silver market also saw positive momentum, with 24-karat silver and 10-gramme 24-karat silver closing at Rs2,550 and Rs2,186.21, respectively, marking gains of Rs70 and Rs60.

Domestic gold prices are intricately linked to changes in global prices and fluctuations in the interbank exchange rate of the local currency. 

On the international front, the spot price of gold has risen by 0.50 per cent, currently trading at $2,012.39. Market sentiment leans towards the belief that the Federal Reserve has concluded its tightening cycle, exerting downward pressure on the US dollar and bond yields.

The US dollar index recorded its third consecutive weekly decline, making gold more affordable for holders of other currencies and positively influencing gold prices. 

Additionally, falling yields enhance the appeal of gold as a safe-haven asset by reducing the opportunity cost of holding the precious metal.