Gold prices moved higher in the international market on Thursday (today) after US inflation data reduced expectations of another interest rate increase by the Federal Reserve this month.
Spot gold initially gained 0.5 per cent to reach $4,175.19 per ounce. US gold futures for December delivery also rose 0.4 per cent to $4,204.80 per ounce.
The increase came after US inflation data for August was weaker than expected.
Market expectations for an October rate hike dropped to around 37 per cent to 38 per cent, although investors still see a stronger possibility of another increase later this year.
Gold started October on a positively after losing more than 6 per cent during September.
Gold price in Pakistan today
Gold prices in Pakistan moved in the opposite direction during Thursday’s (today) local trading.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold fell by Rs3,000 per tola and stood at Rs438,636 per tola.
The price of 10 grams of gold also dropped by Rs2,572, and stood at new rate of Rs376,059.
Previously, gold had jumped by Rs4,300 per tola to Rs441,636. The price of 10 grams had increased by Rs3,686 to Rs378,631.
Moreover, investors are now watching the US non-farm payrolls report for September. The employment data could provide further clues about the Federal Reserve’s next interest rate decision.
The strong US dollar and high Treasury yields are also limiting gold’s ability to make larger gains.
Other metals also moved higher during early trading. Spot silver gained 1.2 per cent to $61.11 per ounce, while platinum increased 0.7 cent to $1,717.35. Palladium rose 0.3 per cent to $1,207.12 per ounce.