PAKISTAN: Domestic bullion recorded gains on Friday as the price of 24-karat gold increased by Rs1,300 per tola to settle today’s session at Rs213,100. The Karachi Sarafa Association reported that the price of 10-gram 24-karat gold closed today’s session at Rs182,698, reflecting a loss of Rs1,114. While 10-gram 22-karat gold stood at Rs166,452, up by Rs1,022.
The price of silver remained unchanged in the domestic market, with 24-karat silver and 10-gram 24-karat silver closing at Rs2,580 and Rs2,211.93 respectively. Domestic gold prices are influenced by changes in international prices and fluctuations in the local currency’s interbank exchange rate.
Despite exhibiting intraday gains, the Pakistani Rupee (PKR) is on course for its fourteenth consecutive loss against the USD. Since gold is denominated in U.S. dollars, when the PKR weakens against the USD, the value of PKR-denominated gold rises.
On the global front, International gold prices dropped and were on track for a second consecutive week of declines. International spot gold is down by 0.20% on the day, currently trading at $1,954.29. The decline is attributed to stronger U.S. dollar and Treasury yields after hawkish remarks from Federal Reserve Chair Jerome Powell.
Similarly, international spot silver traded in the red zone, experiencing a 0.23% decline for the day and currently trading at $22.58. Copyright Mettis Link News Posted on: 2023-11-10T15:01:43+05:00 Data is delayed by 20 minutes Data is delayed by 20 minutes To see more commodities please register for our portal © 2023 Mettis Link News All rights reserved
5 Year Gold Prices in Pakistan
Throughout history, gold has been seen as a special and valuable commodity. Today, owning gold can act as a hedge against inflation and deflation, as well as a good portfolio diversifier. Here are some practical reasons to consider owning gold:
A History of Holding Its Value: Unlike paper currency or other assets, gold has maintained its value throughout the ages. People view gold as a way to preserve wealth across generations. Its unique properties, including resistance to corrosion and ease of working with, contribute to its enduring worth.
Weakness of the U.S. Dollar: When the value of the U.S. dollar falls against other currencies, people often turn to the security of gold. During such times, gold prices tend to rise. For instance, from 1998 to 2008, the price of gold nearly tripled, reaching the $1,000-an-ounce milestone. The decline in the U.S. dollar was influenced by factors like budget deficits and an increase in the money supply.
Inflation Hedge: Gold has historically been an excellent hedge against inflation. When fiat currency loses purchasing power due to inflation, gold tends to rise along with everything else. It is also seen as a store of value, encouraging people to buy gold when their local currency is losing value1.
Source: Mettis Global Link
