Gold rises Rs2,400 ahead of US inflation data

Hits Rs459,736/tola on global gains; rupee settles at 277.67/$

KARACHI:

Gold prices in Pakistan rose on Tuesday, tracking gains in the international market, where the metal edged higher after touching a more than two-month peak earlier in the session.

According to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association, gold per tola reached Rs459,736 after a gain of Rs2,400. Ten-gram gold was sold at Rs394,149, up Rs2,058. Silver also advanced in the local market, rising Rs62 to Rs6,965 per tola.

In the global market, spot gold was up 0.2% at $4,396.87 per ounce at 11:05 am EDT (1505 GMT), after hitting its highest level since June 5 at $4,434.84 earlier in the session, according to Reuters. Market participants are closely watching key US inflation figures that could influence expectations for the Federal Reserve's policy path. The US consumer price index report is due at 08:30 am ET on Wednesday.

Interactive Commodities Director Adnan Agar said gold remained on an upward trajectory. "The high for the day was $4,435; the market was later standing at $4,379, and the low was $4,356. Gold is still on an upward trend, and there are chances that it could go up to the $4,600-$4700 level in the coming days," he said. Agar noted strong resistance above the $4,700-4,800 zone. "If that gets crossed, then fine. Otherwise, after touching $4,600-4,700, gold could come back down to the $4,200-4,300 level."

He also pointed to conflicting signals about US-Iran developments. "Sometimes they say peace has been established, sometimes they say an agreement was reached, and sometimes that it didn't. If the situation remains bad, that will be negative for gold. We'll find out in the coming days." Meanwhile, the Pakistani rupee closed at 277.67, up Rs0.03 from Monday's close at 277.70, while the US dollar held steady against major currencies.