Gold Stays Flat in Pakistan as Fed Signals Possible Rate Hike
The price of gold in Pakistan remained steady on Friday despite a decline in global prices. According to the All-Pakistan Gems and Jewellers Sarafa Association, 24-karat gold was quoted at Rs483,036 per tola, unchanged from Thursday's close. Ten-gram gold also held its value at Rs414,125.
The local rate had dropped by Rs3,500 per tola during the previous session before settling back at Rs483,036. Silver prices, however, moved higher, increasing by Rs180 to Rs7,509 per tola.
The decline in global gold prices was attributed to Federal Reserve Chairman Kevin Warsh's comments on inflation. Warsh stated that US inflation remains too high and that the central bank still has work to do if prices fail to move towards the 2% target. The Fed's preferred PCE measure stood at 3.7% in July, he said.