Oil-driven inflation fears keep gold subdued

Gold in Pakistan lost Rs900 per tola on Wednesday, closing at Rs434,536, The Express Tribune reported. The All-Pakistan Gems and Jewellers Sarafa Association put 24-karat gold at Rs372,544 per 10 grams, down Rs772, while 22-karat gold fell Rs707 to Rs341,511.

The local decline contrasted with a 0.1% rise in US spot gold to $4,127.31 per ounce and a similar gain in December futures to $4,145.20. Oil prices and Middle East tensions fuelled inflation concerns, while investors weighed the outlook for US interest rates before the Federal Reserve's October 27-28 meeting; silver also fell by Rs27 per tola to Rs6,207. The rupee edged up Rs0.01 against the dollar to Rs276.86 in inter-bank trade, according to the State Bank of Pakistan.