Gold down as US jobs data lifts Fed hike bets
“Gold prices in Pakistan declined on Monday, tracking losses in the international market after Friday's strong US jobs report strengthened expectations of a Federal Reserve rate hike this month. Investo…”
Investors are now waiting for key inflation readings for clearer clues on the policy path. In the local market, the 24-karat gold was quoted at Rs463,136 per tola after a drop of Rs2,400, All-Pakistan Gems and Jewellers Sarafa Association.
Ten-gram gold was sold at Rs397,064, down Rs2,058. On Saturday, the per-tola rate had slipped by Rs3,600. Spot gold was down 0.3% at $4,412.73 an ounce by 11:51 am ET (1551 GMT),. US gold futures for December delivery fell 0.4% to $4,458.70.
Trading volumes were thin because US markets were closed for the Labour Day holiday. Interactive Commodities Director Adnan Agar said the session was subdued. "Today (Monday) was a bank holiday in the US, so the market was pretty quiet.
"Stay connected with Aman-e-Pakistan for ongoing live reporting and verified investigative updates."
The high was $4,429, the low was $4,381, and the market was later standing at $4,414. Low volume is expected when there is a bank holiday. The market should open more normally tomorrow (Tuesday).
"He added that the US CPI inflation report, expected later in the current week, and next week's Federal Reserve policy meeting would keep prices volatile. "Fluctuations in gold will continue in the coming days. However, there are higher chances of it going upwards and fewer chances of it going downwards.
"Traders are pricing in roughly a 60% chance of a Fed rate increase in the upcoming meeting. The US PPI and CPI data are due this week and will be closely watched for signs of persistent inflation.
Geopolitical headlines also remained in the background after Iran said it would announce a new restricted zone in the Gulf. Silver followed gold lower in the domestic market, declining Rs39 to Rs7,059 per tola. Analysts say the combination of a firm dollar, higher rate-hike odds and holiday-thinned liquidity has pressured bullion in the near term.
Attention now turns to this week's US inflation prints and the Fed's next policy decision, which will determine whether the recent pullback in both international and Pakistani gold prices extends or reverses. The Pakistani rupee closed at 277.40 against the US dollar on Monday, gaining Rs0.01 compared to Friday's settlement at 277.41.
Internationally, the dollar stayed shaky despite firmer US rate-hike bets, as Middle East tensions raised the risk of broader inflation that could push global central banks to tighten policy together.
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