In a notable market development on Friday, gold prices in Pakistan experienced a modest upturn. The 24-karat gold, in particular, observed a rise of Rs300 per tola, concluding the trading session at Rs218,600. According to the latest figures released by the Karachi Sarafa Association, the closing price for 10-gramme 24-karat gold reached Rs187,414, marking an increase of Rs257. Simultaneously, the 10-gramme 22-karat gold saw a rise to Rs171,796, reflecting a gain of Rs235. The uptick in gold prices follows a recent resurgence in the domestic bullion market, which rebounded strongly after enduring five consecutive losses, resulting in a cumulative loss of Rs6,300 for 24-karat gold. This positive momentum was largely attributed to a robust rally in international markets, which persisted into today’s session and contributed to gains in the domestic market. International spot gold is presently trading at $2,041.17, indicating a 0.26 per cent increase for the day. The surge in global gold prices can be linked to the recent statement by the US Federal Reserve regarding a planned cumulative rate cut of 75 basis points in 2024. Consequently, both US Treasury yields and the dollar faced continued pressure. The depreciation of the dollar renders gold more accessible for holders of other currencies, exerting a favourable influence on gold prices. Furthermore, lower bond yields play a positive role in supporting gold prices, as they reduce the opportunity cost associated with holding this safe-haven asset. In the local context, fluctuations in gold prices are influenced by changes in the exchange rate. The Pakistani rupee (PKR) has been experiencing a series of daily victories against the US dollar, driven by optimism stemming from the successful staff-level agreement (SLA) between the International Monetary Fund (IMF) and Pakistan, coupled with a reduction in the current account deficit for November.
Gold prices in Pakistan climb with international market uptick
