Pakistan · World · Independent Digital Newsroom
The price of 10-gram gold declined by Rs2,915 to Rs366,457.
The latest drop followed a fall of Rs1,500 on Tuesday, when gold prices settled at Rs430,836 per tola.
With the fresh correction, the precious metal has lost Rs4,900 over two consecutive sessions.In the international market, spot gold fell 0.8% to $3,999.42 per ounce by 11:39 am ET (1641 GMT), extending Tuesday's nearly 3% decline.
US gold futures for December delivery decreased 0.6% to $4,006.50 per ounce, as per Reuters.The international sell-off followed stronger-than-expected US inflation data, which boosted the dollar and raised expectations that the Federal Reserve could tighten monetary policy further in December.
US consumer prices increased 0.4% in October, exceeding economists' expectations of a 0.3% rise, according to the latest inflation figures.
The hotter-than-anticipated reading prompted financial markets to reassess the Federal Reserve's rate outlook, with traders pricing in a 100% probability of a rate hike in December."CPI came out a little hotter than expected and the market is interpreting that it warrants higher rates at the December meeting," said Bob Haberkorn, Senior Market Strategist at StoneX.
Higher interest rates generally put pressure on gold because the non-yielding asset becomes less attractive.
A stronger US dollar also makes bullion more expensive for holders of other currencies, potentially reducing international demand.Meanwhile, silver prices in the domestic market moved in the opposite direction, increasing by Rs45 to settle at Rs5,768 per tola.
Elsewhere in the precious metals market, palladium touched its highest level since October 22, reflecting divergent movements across markets.In the inter-bank currency market, the Pakistani rupee gained Rs0.03 against the US dollar to close at 276.62 on Wednesday, compared with Tuesday's closing rate of 276.65. This material may not be….
Gold drops Rs3,400 amid global sell-off Our Correspondent | Updated 6 minutes ago | Strong dollar pushes bullion prices lower; rupee inches up.
