Gold prices in Pakistan rose on Wednesday, with the local market following a recovery in international bullion rates.
The price of gold climbed Rs4,300 per tola to Rs441,636, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also increased by Rs3,686, reaching Rs378,631. On Tuesday, gold had fallen Rs800 per tola to Rs437,336.
Internationally, gold prices moved higher as investors looked ahead to US inflation data for clues about the Federal Reserve’s next move on interest rates.
The international gold rate used by Pakistan’s market rose $43 to $4,191 per ounce.
Spot gold was up 0.2 percent at $4,188.17 per ounce by 0920 GMT. Despite Wednesday’s recovery, the metal remained on course for a monthly decline of more than 5 percent.
US gold futures also gained 1 percent to $4,219.90 per ounce.
Market sentiment has remained sensitive to expectations about US interest rates. Recent economic data and comments from Federal Reserve officials had increased expectations of further rate hikes, putting pressure on gold earlier in the week.
Gold dropped nearly 4 percent on Monday, touching $4,110.55 per ounce, as higher crude oil prices added to concerns that the US central bank could keep rates higher for longer.
However, Federal Reserve Bank of New York President John Williams said on Tuesday that policymakers may need only one more rate hike this year to bring inflation back towards the central bank’s 2 percent target.
His comments helped ease some pressure on bullion prices, while investors continued to wait for fresh US inflation data.
The US dollar also weakened on Wednesday, although it remained on track for a monthly gain. A stronger dollar generally makes gold more expensive for buyers holding other currencies.
Meanwhile, silver prices in Pakistan increased by Rs20 per tola to Rs6,578.
Read next: Gold price in Pakistan today: per tola rate drops further