Gold prices increased slightly in the international market on Monday (today) as lower oil prices supported the precious metal.
Investors were also watching the US Federal Reserve’s interest rate plans and upcoming economic reports.
According to the report, spot gold rose by 0.3 per cent to $4,175.60 per ounce.
US gold futures for December delivery increased by 0.4 per cent to $4,196.40 per ounce.
The increase came as investors assessed inflation concerns and the possible direction of US interest rates.
Why are gold prices rising?
Tim Waterer, chief market analyst at KCM Trade, said gold made a small gain at the start of the week because oil prices had softened.
Lower oil prices can reduce inflation concerns, which may support gold.
He explained that a further fall in oil prices or bond yields could help gold prices rise.
Meanwhile, US import prices increased more than expected in September because of higher energy and other goods costs.
The ongoing Middle East conflict has also raised concerns about inflation.
Investors are now waiting for the Federal Open Market Committee meeting and the upcoming Personal Consumption Expenditures (PCE) inflation report.
The Federal Reserve uses the PCE index to monitor progress towards its 2 per cent inflation target.
The report cited CME’s FedWatch tool as showing a 16 per cent chance of an interest rate increase this month and a 92 per cent chance in December.
Higher interest rates can reduce demand for gold because it does not provide interest income.
Gold prices in Pakistan
Previously, Gold prices in Pakistan fell by Rs1,600 per tola, following a decline in international gold prices.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola dropped to Rs439,036.
Meanwhile, the price of 10 grams of gold decreased by Rs1,372 to Rs376,402.
On Friday, gold prices rose by Rs2,800 per tola to Rs440,636. However, the international gold rate declined by $16 to $4,165 per ounce on Saturday.
The prices change daily because of live global trading, changes in the US dollar, and shifts in economic conditions.
A rise in international prices can make gold jewellery and investment gold more expensive for Pakistani buyers.
Moreover, other precious metals also recorded gains internationally.
Silver increased by 0.9 per cent to $57.54 per ounce, while platinum rose by 0.7 per cent to $1,642.29.
Palladium gained 1.5 per cent to reach $1,129.13 per ounce.