In Pakistan, the domestic gold price continued its decline for the second consecutive week, with the cost of 24-karat gold dropping by Rs550 per tola to Rs217,450.
The Karachi Sarafa Association noted that 24-karat gold concluded the week’s last trading session with a gain of Rs950 per tola.
The 10-gramme 24-karat gold settled at Rs186,428, reflecting a gain of Rs814, while the 10-gramme 22-karat gold closed at Rs170,146.
The international spot rate, used for calculating local rates, closed at $2,068, marking a $3 increase compared to last week.
Escalating concerns over the Middle East conflict led to a rise in the safe-haven asset, but gains were limited due to hawkish remarks from Federal Reserve officials.
Despite the international rate showing an uptick, domestic bullion faced a downside this week due to the strengthened value of the Pakistani rupee against the US dollar.
The PKR marked its ninth consecutive weekly gain against the USD, driven by positive developments as the Executive Board of the IMF concluded the first review of Pakistan’s economic reform programme under the Stand-by Arrangement.
This successful review further boosted investor confidence, contributing significantly to the PKR’s upward trend against the dollar.
The interplay between the domestic gold price and the local rupee is evident, as gold, denominated in US dollars, tends to decrease in value when the home currency appreciates against the greenback.
