Gold Prices Slip as Fed Hike Bets Strengthen Amid US Jobs Report
Gold prices in Pakistan declined on Monday as investors await key inflation readings for clearer clues on the Federal Reserve's policy path. The US jobs report released on Friday strengthened expectations of a Fed rate hike this month, leading to losses in the international market. Spot gold was down 0.3% at $4,412.73 an ounce by 11:51 am ET (1551 GMT), according to Reuters.
Local rates followed suit, with the 24-karat gold quoted at Rs463,136 per tola after a drop of Rs2,400. Ten-gram gold was sold at Rs397,064, down Rs2,058. Interactive Commodities Director Adnan Agar noted that low volume is expected when there is a bank holiday.
Agar added that the US CPI inflation report and next week's Federal Reserve policy meeting will keep prices volatile. Traders are pricing in roughly a 60% chance of a Fed rate increase, which could put downward pressure on gold.