Pakistan Gold Prices Drop Ahead of US Inflation Data

Gold prices in Pakistan dropped for the second consecutive day on Tuesday as international markets cooled ahead of upcoming US inflation data. The local gold market was sluggish due to anticipation of the Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which will influence expectations of a Federal Reserve rate hike.

The 24-karat gold price fell by Rs1,000 per tola to Rs462,136, while ten-gram gold dropped by Rs857 to Rs396,207. However, silver prices rose by Rs10 to Rs7,069 per tola.

According to Adnan Agar, Director at Interactive Commodities, the market was slow due to its anticipation of the US inflation data. He mentioned that if gold drops below $4,280, it could fall towards the $4,000 area.

In other currency news, the Pakistani rupee extended its gains in the inter-bank market, closing at 277.37 against the US dollar. The Japanese yen also climbed to fresh seven-month highs as traders unwound short positions on growing bets of a Bank of Japan rate hike.