Gold prices in Pakistan fell for a second straight day on Tuesday as the precious metal remained under pressure in international markets.
The price of gold dropped Rs1,000 per tola to Rs462,136, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also declined by Rs857 to Rs396,207.
Gold has now lost Rs3,400 per tola over the past two sessions. On Monday, its price fell Rs2,400 to settle at Rs463,136.
The decline in Pakistan followed a weaker trend in the global market, where gold dropped $10 to $4,396 per ounce.
Gold under pressure globally
International gold prices slipped on Tuesday as rising oil prices added to inflation concerns, while investors waited for key US economic data that could shape expectations for the Federal Reserve’s next interest rate move.
Spot gold was down 0.3 percent at $4,390.50 an ounce by 0816 GMT after touching a session high of $4,442.70. US gold futures for December delivery fell 0.9 percent to $4,435.
“Gold trades cautiously today,” said Nikos Tzabouras, a senior market analyst at Tradu.com. He said higher oil prices were raising inflation risks and could strengthen expectations for higher US interest rates.
Oil prices moved to multi-week highs after Yemen’s Tehran-backed Houthis attacked energy facilities and cities in Saudi Arabia, a US ally.
Gold also came under pressure after strong US jobs data released on Friday. The figures showed that job growth accelerated in August, while the unemployment rate remained at 4.1 percent, pointing to a stronger labour market.
Markets are now pricing in around a 60 percent chance of a US interest rate hike at the Federal Reserve’s next policy meeting, up from about 50 percent before the jobs data.
Higher interest rates tend to weigh on gold because the metal does not generate interest or other income.
However, a weaker US dollar provided some support by making dollar-priced gold cheaper for buyers using other currencies.
Investors are now turning their attention to US producer price data due on Thursday and consumer price data on Friday. Both reports could influence expectations for the Fed’s rate decision.
Meanwhile, silver prices in Pakistan moved in the opposite direction. The metal gained Rs10 to Rs7,069 per tola.
In international markets, silver fell 0.5 percent to $65.76 an ounce, while platinum declined 0.2 percent to $1,821.36 and palladium dropped 0.4 percent to $1,383.08.