Gold falls Rs7,000 as bullion hits 3-month low

Gold in Pakistan lost Rs7,000 per tola on Friday, with the local rate settling at Rs424,536, The Express Tribune reported. The price for 10 grams also declined, by Rs6,001 to Rs363,971, after a Rs3,000 per-tola drop on Thursday.

International spot bullion was down 0.6% at $4,000.59 an ounce, after briefly moving below $4,000 and reaching a three-month low. Inflation concerns linked to rising energy prices have reinforced expectations of higher US interest rates, which can make non-interest-bearing gold less attractive; investors are also watching next week’s Federal Reserve decision and inflation data. In Pakistan, silver fell Rs221 to Rs5,865 per tola, while the rupee edged up to 276.82 per dollar in interbank trading.