Gold prices in Pakistan fell on Tuesday, tracking a decline in the international market as investors assessed Middle East tensions and waited for key US labour market data.
The price of gold dropped Rs800 per tola to Rs465,336, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also declined by Rs686 to Rs398,950.
The latest fall followed a Rs1,800 decline on Monday, when gold settled at Rs466,136 per tola.
In the international market, gold fell $8 to $4,428 per ounce, including a $20 premium.
Spot gold was down 0.4 percent at $4,430.78 an ounce by 0701 GMT after hitting its lowest level since August 19 in the previous session. US gold futures also slipped 0.1 percent to $4,479.30 an ounce.
Investors are now focused on US labour market data due this week, including job openings, the ADP employment report and nonfarm payrolls. The figures could shape expectations about the Federal Reserve’s interest rate policy.
Gold tends to come under pressure when interest rates rise as higher rates increase the appeal of yield-generating assets.
The metal also faced pressure after Federal Reserve Chair Kevin Warsh signalled last week that the central bank may need to take further action if it does not have enough confidence that inflation is moving towards its 2 percent target.
Meanwhile, tensions in the Middle East remain a key concern for markets. US President Donald Trump threatened further strikes against Iran on Monday after renewed fighting between the two sides. Oil prices rose for a second straight session, adding to concerns about inflation.
Traders currently see a 66 percent chance of a US rate hike in September and an 89 percent probability of a hike in December, according to the CME FedWatch Tool.
In Pakistan, silver prices also fell Rs50 to Rs7,129 per tola.
In global markets, spot silver slipped 0.1 percent to $66.47 an ounce, while platinum rose 0.9 percent to $1,807.58 and palladium fell 0.2 percent to $1,354.09.