Gold prices in Pakistan slipped on Tuesday, even as international bullion remained close to its highest level in more than three months.
The price of 24-karat gold fell Rs600 to Rs486,536 per tola, according to market data. The price of 24-karat gold also dropped Rs514 to Rs417,126 per 10 grams.
Meanwhile, 22-karat gold was quoted at Rs382,379 per 10 grams after declining Rs471.
Silver prices also moved lower in the domestic market. The price of 24-karat silver fell Rs100 to Rs7,279 per tola, while 10 grams declined Rs86 to Rs6,240.
In the international market, gold remained volatile after reaching a more than three-month high earlier in the day.
Spot gold was up 0.72 percent at $4,636.08 per ounce at 10:08am Pakistan time, after touching an intraday high of $4,700. However, it later eased 0.2 percent to $4,640.40 per ounce by 1128 GMT. US gold futures were little changed at $4,696.10.
The pullback came as investors booked some profits and the US dollar recovered part of its recent losses. A stronger dollar makes gold more expensive for buyers holding other currencies.
Saxo Bank analyst Ole Hansen said profit-taking was behind much of the day’s move, while recent support for gold remained intact.
Gold has drawn renewed interest after the US Treasury announced plans to increase the size of some debt buyback operations. The move has helped limit pressure on bond yields and supported demand for the precious metal.
Investors are now turning their attention to key US economic and monetary policy signals. The Personal Consumption Expenditures inflation report is due on Wednesday, while Federal Reserve Chairman Kevin Warsh is expected to speak at the Jackson Hole symposium on Friday.
Both events could offer fresh clues about the outlook for US interest rates and the dollar, which may set the direction for gold in the days ahead.