Gold jumps Rs3,200 a tola to Rs432,336 as weaker dollar lifts bullion
Gold in Pakistan climbed Rs3,200 a tola on Monday to Rs432,336, as a weaker US dollar and easing oil prices pulled buyers back into the metal ahead of US inflation data due on Tuesday.
The All-Pakistan Gems and Jewellers Sarafa Association put 10-gram gold at Rs370,658, up Rs2,744. The local move tracked international spot gold, which gained 1.2% to $4,116.15 an ounce by 11:30 am ET, while US December futures rose 1.2% to $4,125.40.
Jim Wyckoff of American Gold Exchange said the dollar index had weakened at the start of the trading week, making dollar-denominated bullion cheaper for buyers holding other currencies. He added that falling crude prices were easing inflation concerns and could give central banks more room for looser monetary policy.
Oil slid after US President Donald Trump played down the prospect of renewed strikes on Iran, though attacks on ships near the Strait of Hormuz kept energy supply worries alive. Investors now await Tuesday's US consumer price index, with trading reports cited by Token Times putting an 82.2% probability on a Federal Reserve rate hike in December. China's central bank bought about 25.8 tonnes of gold in October.
Silver also rose in Pakistan, up Rs55 to Rs5,723 a tola. Internationally, spot silver gained 1.6% to $52.69 an ounce, platinum 2.1% to $1,564.95 and palladium 0.2% to $1,025.46.
