A DIP IN DOMESTIC GOLD RATES
As 2024 unfolds, Pakistan’s domestic gold market has witnessed a notable decline, with the price of 24-karat gold dropping significantly. The price has decreased by Rs4,500 per tola, bringing it to Rs215,500 in January. This downward trend mirrors the fall in international gold prices and is further influenced by the strengthening of the nation’s currency the Pakistani rupee (PKR).
RECENT MARKET MOVEMENTS
In a recent trading session, the domestic gold market saw a break in its winning streak. The price of 24-karat gold fell by Rs600 per tola, ending two consecutive days of gains.
KARACHI SARAFA ASSOCIATION’S REPORT
The Karachi Sarafa Association provided detailed figures, noting that the 10-gram 24-karat gold is currently priced at Rs184,756, which is up by Rs515 from the previous day. In contrast, the 10-gram 22-karat gold is available at Rs169,360.
STABILITY IN SILVER PRICES
Silver prices in Pakistan have remained steady amidst the fluctuations in the gold market. The price for 24-karat silver stands at Rs2,600 per tola and Rs2,229.08 per 10-gram, showing no significant changes.
INTERNATIONAL GOLD MARKET DYNAMICS
CURRENT TRADING SCENARIO
On the global front, international spot gold is trading at $2039.05 as of 2:06 pm PST, marking a slight increase of 0.10% from the previous session’s closing on Tuesday.
COMPARISON WITH ASSOCIATION’S RATE
However, the rate reported by the Karachi Sarafa Association is slightly different, standing at $2,055, a decrease of $2 compared to the previous day.
INFLUENCES ON INTERNATIONAL PRICES
The international spot rate has seen a decrease of 1.11% this month. This trend is largely attributed to expectations of a rate cut by the U.S. Federal Reserve. Concurrently, increasing tensions in the Middle East and wavering hopes for a rate cut have heightened the appeal of safe-haven assets like gold, suggesting a potential bullish trend ahead.
ANALYSING THE GOLD MARKET OUTLOOK
As January 2024 progresses, the gold market in Pakistan presents a complex picture, influenced by both domestic and international factors at play. The interplay of the Pakistani rupee’s (PKR) strength, global economic policies, and geopolitical tensions will continue to shape the trajectory of gold and silver prices. Investors and market watchers will be closely eye on these developments to gauge the future direction of this ever-dynamic market.
