ISLAMABAD: Gold prices in the local market increased by Rs1,300 per tola on Friday following an overnight increase in the international bullion prices. According to the Karachi Sarafa Association, the price of one tola of 24-karat gold increased to Rs213,100 from Rs211,800. Similarly, the gold price for 10 grams of 24-karat gold increased to Rs182,698 from Rs181,676, showing an increase of Rs1,022. On the other hand, as of 1205 hours GMT, gold futures in the international market were available at $1,948.50 per ounce, showing a decrease of $9.70. Out of the $9.70 decrease, -$0.20 was due to strengthening of the US dollar and -$9.50 was due to predominant sellers, according to the Kitco Gold Index. The US dollar changed its positive tone and as a result, gold price bounced from a fresh weekly low of $1,944.71. Financial markets maintained cautious optimism amid hopes that central banks are done with monetary tightening, despite policymakers insisting on keeping the door open for additional rate hikes. TLTP
Brent remains above $80 mark as oil surges over 1pc
ISLAMABAD: Crude oil prices edged higher on Friday but remained on track to record their third straight weekly decline as concerns about demand continued to outweigh tighter supply prospects. As of 1215 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.92 (+1.15 percent) to reach $80.93 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, went up by $0.87 (+1.15 percent) to $76.61 a barrel. Similarly, the price of Russian Sokol increased by $0.39 (+0.52 percent) to $74.84. Arab Light prices witnessed an increase of $0.44 (+0.52 percent) to reach $84.74 a barrel. TLTP
On the other hand, the price for Opec Basket decreased to $84.27 a barrel with a decrease of $2.23 (-2.58 percent). The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey.
The oil market fundamentals remain “remarkably stable” despite the uncertainty and potential for volatility, S&P Global Commodity Insights said. Growth in non-Opec+ supply, decelerating demand growth in China and sizable Opec spare capacity point to a well-supplied market in coming months, S&P Global said.
“Oil prices have remained below where they were in late September – a week before the Hamas attack,” said Jim Burkhard, vice president and head of research for oil markets, energy and mobility at S&P Global Commodity Insights. “Strong oil market fundamentals are prevailing over any fears at the moment.”
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said on Thursday that oil demand was healthy and that speculators were to blame for the recent drop in crude prices. “It’s not weak,” Prince Abdulaziz was quoted as saying by Bloomberg on the sidelines of an event in Riyadh. “People are pretending it’s weak. It’s all a ploy.”
The minister said some oil market participants had been misunderstanding increases in oil exports in recent months from Opec and their correlation with those countries’ production. Shipments are seasonal and should not be viewed as reflecting fluctuations in output, he said.
The Opec+ group of oil producers is set to meet in Vienna on November 26 to set output targets for the first half of 2024. Saudi Arabia and Russia are expected to extend their voluntary production cuts of a combined 1.3 million bpd into the new year if the downward pressure on oil prices continues, according to MUFG.
