Gold prices in Pakistan edged higher on Thursday, recovering slightly after a sharp fall a day earlier, as international prices also moved up.
The price of gold rose by Rs600 per tola to Rs435,036, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also increased by Rs515 to Rs372,973.
The latest rise came after gold lost Rs3,100 per tola on Wednesday, when the price settled at Rs434,436.
In the international market, gold gained $6 to reach $4,125 per ounce. Spot gold was up 0.3 percent at $4,122.99 per ounce by 0916 GMT, after falling to its lowest level since August 5 in the previous session.
Investors were assessing the minutes of the US Federal Reserve’s September meeting for clues about the direction of interest rates.
The minutes showed that Fed officials were divided over the need for further rate increases. Some policymakers supported a hike to contain the impact of energy and other price shocks, while more hawkish officials wanted tighter policy to prevent demand-driven inflation from gaining pace.
Markets now see only a 21.6 percent chance of a rate hike in October, while the probability of a December increase stands at 85 percent, according to CME’s FedWatch tool.
Higher interest rates tend to put pressure on gold because the precious metal does not offer interest income.
Lukman Otunuga, senior research analyst at FXTM, said gold was hovering around $4,100 as geopolitical risks continued to fuel inflation concerns and traders weighed the possibility of a year-end Fed rate hike.
He warned that a sustained fall below $4,100 could push gold towards $4,000, while holding above that level could open the way for a recovery towards $4,200.
Meanwhile, silver prices in Pakistan fell by Rs120 to Rs6,368 per tola.
In global markets, spot silver dropped 2.2 percent to $58.85 an ounce. Platinum gained 1.6 percent to $1,656.88, while palladium rose 0.8 percent to $1,133.65.
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