Gold prices in Pakistan bounced back on Wednesday, adding Rs3,500 per tola after falling a day earlier, as international markets weighed rising oil prices against expectations for the US Federal Reserve’s next interest rate decision.
In the local market, gold rose to Rs425,636 per tola, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also climbed by Rs3,001 to reach Rs364,914.
The increase followed Tuesday’s decline, when gold lost Rs1,300 per tola to settle at Rs422,136.
Silver prices moved higher as well, gaining Rs61 to reach Rs5,854 per tola.
Gold prices in the international market
International gold prices slipped on Wednesday after rising around 1 percent in the previous session. Higher oil prices fuelled concerns about inflation, while investors waited for the Federal Reserve’s policy announcement for clues about the direction of interest rates.
Spot gold fell 0.7 percent to $4,030.20 per ounce by 0602 GMT, while US gold futures for December delivery dropped 0.8 percent to $4,043.
Rising energy costs have become a key concern for gold investors. Oil prices gained more than 1 percent on Wednesday after an attack on a refinery in Saudi Arabia raised fresh concerns about supply disruptions from one of the world’s major oil exporters.
Higher oil prices can push inflation upwards, making it harder for the Fed to cut interest rates. If rates remain high for longer, gold may come under pressure because the precious metal does not pay interest.
“Gold is moving based on the interest rate expectations and inflation risks because of higher energy prices,” said Soni Kumari, an analyst at ANZ.
She added that the Fed’s cautious approach remained a key short-term challenge for gold prices.
Investors were awaiting the Fed’s policy decision, scheduled for 1800 GMT on Wednesday. Attention will then turn to US Personal Consumption Expenditures (PCE) data due on Thursday, a closely watched measure of inflation that helps guide the central bank’s decisions.
The Fed aims to bring inflation down to 2 percent, and the latest signals on prices and interest rates could shape gold’s next move.
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