Gold prices in Pakistan fell on Saturday, extending their decline in line with weaker rates in the international market.
The price of gold dropped Rs2,100 per tola to Rs450,936, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also declined by Rs1,800 to Rs386,604.
The latest drop came a day after gold recorded a sharp increase in the local market. On Friday, the price of gold had climbed Rs4,700 per tola to Rs453,036.
The international price of gold also moved lower, falling $21 to $4,284 per ounce.
Silver prices followed the same direction in the local market. The price of silver fell Rs60 per tola to Rs6,903.
Why gold prices are falling
Gold has faced pressure in global markets as higher US Treasury yields and concerns about inflation have reduced demand for the precious metal.
Spot gold was trading at around $4,282.98 per ounce on Friday afternoon, up slightly on the day but still on course for a weekly decline of about 2.1 percent.
Analysts said rising Treasury yields have made gold less attractive because the precious metal does not pay interest.
The benchmark US 10-year Treasury yield also reached a fresh 19-year high, increasing the cost of holding gold compared with interest-bearing assets.
Gold has also been affected by expectations of tighter US monetary policy. The Federal Reserve raised interest rates by 0.25 percentage points last week, its first increase in three years, while signalling that further increases could follow.
Market participants are currently pricing in a 66 percent chance of another rate hike in October and a 93 percent probability of an increase in December, according to the CME FedWatch Tool.
Persistent inflation concerns, higher energy prices and rising bond yields have therefore continued to weigh on gold prices, keeping the precious metal under pressure despite occasional gains.