Gold prices in Pakistan moved lower on Saturday, tracking weakness in the international market and offering some relief to buyers after recent record highs.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell by Rs1,000 per tola to Rs431,236.
The price of 10 grams of gold also declined by Rs730, bringing it down to Rs369,715.
The latest drop comes just days after a much sharper fall on June 23, when gold lost Rs10,400 per tola in a single day and settled at Rs432,236.
In the international market, gold was quoted at $4,088 per ounce, including a premium of $20, after losing $10 during the day.
Silver prices also moved lower in the local market. The price of silver dropped by Rs271 per tola to Rs6,393.
Global market
Although local prices weakened, gold recovered slightly in international trading on Friday after the US dollar lost some strength and investors scaled back expectations of another US interest rate increase.
Spot gold climbed 1.3 percent to $4,077.64 per ounce, while US gold futures settled 1.2 percent higher at $4,096.30 per ounce.
The rebound followed fresh US inflation data, which showed the Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation measure, rose 4.1 percent in the year to May, matching market expectations.
Following the data, traders lowered expectations of a September interest rate increase. According to CME Group’s FedWatch Tool, markets are now pricing in a 59 percent chance of a rate hike, down from 64 percent earlier.
Market analyst Jim Wyckoff of American Gold Exchange said gold was seeing a modest recovery after facing heavy selling pressure earlier in the week.
Even with Friday’s gains, bullion remained on track for a fourth consecutive weekly decline after touching its lowest level in more than seven months earlier this week.
Analysts at TD Securities said stronger oil prices and a firmer US dollar could continue to weigh on gold in the months ahead, as both have historically moved in the opposite direction to the precious metal.
Among other precious metals, spot silver rose 2.2 percent to $59.12 per ounce, while platinum gained 2 percent and palladium climbed 2.5 percent. Despite Friday’s gains, all three metals were still headed for weekly losses.
Read next: Gold price inches up in Pakistan, silver records decline
