Oil-driven inflation fears keep gold subdued

Similarly, 22-karat gold per 10 grams dropped by Rs707 to Rs341,511.

The domestic market's decline came even as spot gold in the US edged up 0.1% to $4,127.31 per ounce by 1510 GMT, recovering slightly after touching its lowest level since October 15 earlier in the session, as per Reuters.

US gold futures for December delivery also rose 0.1% to $4,145.20 per ounce.International bullion prices remained near a one-week low as a rally in oil prices fuelled concerns about inflation amid escalating Middle East tensions.

Investors were also assessing the outlook for US monetary policy ahead of the Federal Reserve's October 27-28 meeting.

A Reuters' poll indicated that the Fed was likely to refrain from raising rates at its upcoming meeting.

However, uncertainty over inflation and the future path of monetary policy continued to cloud the outlook for gold.Higher rates generally weigh on non-yielding assets such as gold by increasing the opportunity cost of holding bullion.

Persistent inflationary pressures, meanwhile, could complicate expectations for future rate cuts.

Analysts said risks for gold prices remained skewed to the downside, reflecting uncertainty over rates and broader economic conditions.In the domestic market, silver prices also declined.

The rate of silver fell by Rs27 per tola to Rs6,207, while 24-karat silver per 10 grams dropped by Rs23 to Rs5,321.Meanwhile, the Pakistani rupee appreciated by Rs0.01 against the US dollar in the inter-bank market, closing at Rs276.86, according to the State Bank of Pakistan.

The local currency had settled at Rs276.87 against the greenback on Tuesday.

Oil-driven inflation fears keep gold subdued Our Correspondent | Updated 3 minutes ago | Safe-haven asset falls Rs900/tola despite global uptick; rupee edges up.