Gold jumps ahead of US Fed policy decision

Gold in Pakistan rose Rs3,500 per tola on Wednesday to Rs425,636, reversing the previous day’s Rs1,300 decline, The Express Tribune reported. The 10-gram rate gained Rs3,001 to Rs364,914, while silver added Rs61 per tola to Rs5,854, according to the All-Pakistan Gems and Jewellers Sarafa Association. The local increases came as spot gold slipped 0.3% internationally to $4,044.54 per ounce.

Investors were watching for guidance from the US Federal Reserve on interest rates, with the source reporting that the Fed later kept rates unchanged. Lower rates can support gold because bullion does not pay a yield, while inflation concerns, oil prices and Middle East tensions were also part of the market backdrop. Investors were also awaiting Thursday’s US personal consumption expenditures index, a closely watched inflation measure.