GOLD PRICES ON THE RISE

As of the latest session, the luster of 24-karat gold in Pakistan brightened with an increase of Rs1,300 per tola, setting a new price point at Rs212,400 per tola. This uptick follows a notable gain in the previous session, showcasing the metal’s strong market momentum.

The Karachi Sarafa Association, a pivotal body in Pakistan’s gold market, reported that the price for a 10-gram portion of 24-karat gold reached Rs182,099, marking a gain of Rs1,115 from the last session. Additionally, the cost of 10-gram 22-karat gold also ascended, arriving at Rs166,924. A day earlier!

XAUUSD posted an intraday high of $2008.16 and intraday low of $2002.46. Gold is currently trading at $2005.94 (6:16pm Friday, 16 February 2024 (GMT+5) Time in Pakistan). A day earlier gold was trading at $1996.09 (2:50pm Thursday, 15 February 2024 (GMT+5) Time in Pakistan).

XAUUSD_2024-02-16_18-16-02

SILVER STANDS STEADY

In contrast to gold’s dramatic rise, silver prices held their ground without any change in the latest session. The rate for 24-karat silver per tola remained at Rs2,580, and the price for a 10-gram segment was steady at Rs2,211.93, suggesting a momentary pause in volatility for this metal.

FACTORS BEHIND THE SURGE

Despite the gold market’s recent uplift, it’s crucial to contextualize this against the backdrop of ongoing political instability within the country and a weekly perspective that still hints at a potential overall loss. The unexpected spike in US inflation figures earlier this week sent ripples across global markets, momentarily pushing gold below the significant $2,000 threshold for the first time in two months.

This development was met with disappointment by investors, who had been buoyed by a preceding period of easing price pressures and anticipations of rate cuts within the year. However, the international spot gold price has since rebounded robustly, now trading at $2005.94, showcasing a day-over-day gain of over $1.52.

CURRENCY FLUCTUATIONS: A DOUBLE-EDGED SWORD

The domestic gold rate’s fluctuations are intricately tied to the performance of the Pakistani Rupee (PKR) against the US Dollar. After a historic 13-week winning streak, the PKR experienced a marginal decline of 8 paisa against the Dollar. Since gold prices are benchmarked in US dollars, any depreciation in the PKR translates to an increase in the local market value of gold, affecting investment decisions and market dynamics.

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