Gold falls Rs3,800 as global rate hits 1-month low

On Monday, gold in Pakistan lost Rs3,800 per tola, following weaker moves in international bullion. According to the All-Pakistan Gems and Jewellers Sarafa Association, the tola rate fell to Rs453,336 from Rs457,136 on Saturday. Ten grams of gold now cost Rs388,662 after a Rs3,258 decline, while silver eased Rs122 per tola to Rs6,802.

In the global market, spot gold slid 1.8% to $4,271.59 an ounce by 1328 GMT, its weakest since August 7, Reuters reported. US gold futures were down 2.2% at $4,311.20.

Rising oil prices, which climbed more than 4%, added to inflation worries. Stronger-than-expected US inflation figures released on Friday also raised the chance of a Federal Reserve rate increase at its Wednesday meeting. Adnan Agar, a director at Interactive Commodities, said the Fed's tone, whether dovish or hawkish, would matter most, and that gold had earlier dipped to $4,255 an ounce before recovering near $4,310.