Bullion cools ahead of US CPI, PPI data

Gold prices in Pakistan fell for a second straight session on Tuesday, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association. The 24-karat tola was quoted at Rs462,136 after a Rs1,000 decline, while the ten-gram price dropped Rs857 to Rs396,207. Over two sessions the local market has shed Rs3,400 per tola, while silver rose Rs10 to Rs7,069 per tola.

Citing Reuters, The Express Tribune reported that spot gold slipped 0.1% to $4,398.71 an ounce by 11:42 am EDT, after an earlier peak near $4,442. Rising oil prices and stronger expectations of a Federal Reserve rate increase later this month weighed on the metal, since higher rates make the non-yielding asset less attractive. Spot gold had already dropped 2.4% on Friday after US jobs figures came in above expectations.

Traders are watching US producer price figures on Thursday and consumer price data on Friday, both of which will inform views on the Fed's mid-September decision. In the inter-bank market, the rupee edged up Rs0.03, or 0.01%, and ended at 277.37 per US dollar, compared with 277.40 on Monday. The Express Tribune called the move modest, in keeping with the currency's steadiness of late.