Gold steady as Fed hints at rate hike

Gold prices in Pakistan held steady on Friday, with 24-karat gold at Rs483,036 per tola, the same as Thursday's close, according to the All-Pakistan Gems and Jewellers Sarafa Association. The ten-gram price stayed flat at Rs414,125. Silver gained Rs180 to Rs7,509 per tola, and on Thursday local gold had fallen Rs3,500 per tola intraday before closing at that level.

Spot gold dropped 0.8% to $4,563.05 an ounce by 1452 GMT, according to Reuters, having dipped as low as $4,528.94 earlier that session. The decline followed remarks from Federal Reserve Chairman Kevin Warsh at the Jackson Hole symposium, where he said US inflation was too high and that the central bank had more to do before prices clearly moved toward its 2% goal. Expectations for a September rate increase climbed to roughly 55% after his speech, while the dollar firmed and Treasury yields rose.

Adnan Agar, a director at Interactive Commodities, said gold typically weakens when US rates rise and the dollar strengthens, though bullion still draws support as a safe haven from geopolitical strains and persistent price pressures. Oil benchmark Brent was priced under $93 a barrel before sliding toward the high $80s as sellers locked in gains, while traders weighed reports about stricter American curbs on Iran. In the currency market, the rupee ended Friday at 277.50 per dollar, gaining Rs0.01 against Thursday's 277.51 level.