Gold drops despite global rebound

Gold prices in Pakistan dropped for a second straight day on Tuesday, according to the All-Pakistan Gems and Jewellers Sarafa Association. The 24-karat tola price slipped Rs800 to Rs437,336, while the 10-gram rate eased Rs686 to Rs374,945. The fall followed a steeper Rs12,800 drop on Monday, when the tola closed at Rs438,136.

Although local rates moved lower, international spot gold rose about 1% to $4,155.73 an ounce, bouncing back from $4,110.55, a low not seen in more than seven weeks, reached in the previous session. Bullion stayed below its 100-day moving average as a firmer dollar and elevated Treasury yields kept pressure on the metal. Investors are now watching US inflation data due Wednesday and the jobs report for Friday.

Citing Reuters, The Express Tribune said traders were pricing in roughly a 68% likelihood of a 25-basis-point tightening by the Federal Reserve in October. Silver in Pakistan fell Rs20 per tola to Rs6,558, while the rupee gained Rs0.03 against the dollar to close at 277.12.