Gold down as US jobs data lifts Fed hike bets

Local gold rates in Pakistan moved lower on Monday as bullion followed weaker global prices. According to The Express Tribune, the 24-karat tola was quoted at Rs463,136 after a Rs2,400 decline, based on rates from the All-Pakistan Gems and Jewellers Sarafa Association. Ten-gram gold sold for Rs397,064, down Rs2,058, while silver fell Rs39 to Rs7,059 per tola.

Spot gold slipped 0.3% to $4,412.73 an ounce by 11:51 am ET, Reuters reported, as firmer US jobs data on Friday boosted bets that the Fed would raise rates later this month. Trading was thin because US markets were shut during the Labour Day holiday, and traders priced in roughly a 60% chance of an increase at the upcoming meeting. Adnan Agar of Interactive Commodities said fluctuations would persist ahead of US CPI inflation data and next week's Fed policy meeting.

The rupee closed at 277.40 against the dollar on Monday, up Rs0.01 from Friday's 277.41. The report also linked Middle East tensions to wider inflation risks, which could lead central banks around the world to act in step.