Strong dollar pulls gold down

Domestic gold rates fell on Monday, with the per-tola price dropping Rs2,700 to Rs457,536 according to the All-Pakistan Gems and Jewellers Sarafa Association. The 10-gram rate declined Rs2,315 to Rs392,263, extending a Rs100 fall recorded on Saturday. According to The Express Tribune, the move followed weaker international bullion prices.

Spot gold was 0.6% lower at $4,350.39 an ounce at 11:40am ET, after dipping to $4,322.19 earlier in the session, Reuters reported. Expectations of further US monetary tightening lifted the dollar, and the FedWatch Tool put the chance of a December rate hike at 88%. Higher rate expectations usually weigh on gold, while a firmer dollar makes the metal costlier for buyers using other currencies. Minneapolis Fed President Neel Kashkari also said inflation remained too high in various parts of the US economy.

Interactive Commodities Director Adnan Agar said gold has traded in a broad range of roughly $4,250 to $4,400 over the past 10 to 15 days without a clear direction. He pointed to oil price swings and steady physical demand as factors shaping bullion sentiment. Silver stayed at Rs7,100 per tola, while the rupee strengthened by Rs0.03, ending at Rs277.22 per dollar in the inter-bank market.