Gold rises Rs4,700 despite global weekly loss

Local bullion prices rose steeply on Friday, with 24-karat gold up Rs4,700 per tola to Rs453,036, according to the All-Pakistan Gems and Jewellers Sarafa Association. The 10-gram rate climbed Rs4,029 to Rs388,404, reversing Thursday's Rs5,600 drop to Rs448,336 that had followed five straight sessions of decline. Silver also firmed, adding Rs126 to reach Rs6,963 per tola.

Overseas bullion moved in the opposite direction, with spot gold near $4,275 an ounce and set for a weekly fall, Reuters reported. The metal fell roughly 2% to 2.4% over the week as investors weighed persistent inflation, firmer US Treasury yields and possible tighter Federal Reserve policy. A stronger greenback also weighed on demand, since higher rates typically make assets that pay no yield, including gold, less appealing.

The rupee gained Rs0.01 against the dollar, finishing at 277.16 compared with 277.17 a day earlier. Adnan Agar of Interactive Commodities said gold was trading around $4,270 to $4,275 after dipping to about $4,240, and he pointed to the $4,200 to $4,250 band as a key support area. He described the metal as still fragile, with rising US Treasury yields remaining his principal worry.