Gold prices in Pakistan fell on Thursday, with the local market following a decline in international bullion rates.
The price of gold dropped Rs3,500 per tola to Rs483,036, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also declined by Rs3,001 to Rs414,125.
The latest fall came a day after gold lost Rs600 per tola, closing at Rs486,536 on Wednesday.
In the international market, the rate used for local pricing fell by $35 to $4,605 per ounce, including a $20 premium.
Silver, however, moved in the opposite direction. Its price rose Rs50 to Rs7,329 per tola in Pakistan.
Gold prices in the international market
Global gold prices remained firm on Thursday as investors continued to watch concerns over the US dollar and the country’s growing budget deficit.
Spot gold was up 0.4 per cent at $4,611.16 an ounce by 0630 GMT, while US gold futures gained 0.3 per cent to $4,664.50.
Analysts said fears over a weaker US dollar remained a key support for gold. Investors are also waiting for comments from US Federal Reserve Chair Kevin Warsh at the Jackson Hole economic symposium on Friday.
The remarks could offer clues about the Fed’s approach to interest rates and influence the next move in gold prices.
Gold gained more than 5 per cent last week after the US Treasury announced plans to increase some of its debt buyback operations. The move renewed concerns about the long-term strength of the dollar and added to demand for gold.
Markets currently see a 36.1 per cent chance of a US rate hike in September, while the probability rises to 72.1 per cent by December, according to the CME FedWatch Tool.
Other precious metals also gained on Thursday. Spot silver rose 1 per cent to $68.77 an ounce, platinum increased 0.5 per cent to $1,837.48, while palladium edged up 0.1 per cent to $1,329.81.