According to FX Stree, gold extended its recovery into the lower $2,680s on Wednesday after market jitters caused by a dip in US Manufacturing data on Tuesday led to a decline in the US Dollar (USD), a fall in US Treasury yields and a downward revision to the expected path of US interest rates. Lower expected interest rates are bullish for Gold as they reduce the opportunity cost of holding the non-interest paying asset.

Gold strengthened after the NY Empire State Manufacturing Index declined into negative territory in October, registering minus 11.4 following an 11.5 rise in September and undershooting expectations of 2.3. This took the index to its lowest level in five months after August’s brief-lived recovery.

In the local market, the 24-karat gold sold at Rs277,200 per tola compared to its sale at Rs275,000 on last trading day, the association reported.

It maintained the price of 10-gram of 24-karat gold also increased by Rs1,886 to Rs237,654 from Rs235,768. The price of 10 gram 22 karat gold went up to Rs. 217,850 from Rs. 216,121, it added.