Gold prices in Pakistan fell further on Wednesday as weaker international rates and a stronger US dollar put pressure on the precious metal.
The price of gold dropped Rs1,800 per tola to Rs453,936, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also fell by Rs1,544 to Rs389,176.
Gold had already lost Rs1,800 per tola on Tuesday, when it closed at Rs455,736.
The decline came as gold prices fell in international markets. The global rate dropped $18 to $4,314 per ounce.
Spot gold was down 0.9 percent at $4,314.37 per ounce by 1207 GMT, while US gold futures for December delivery fell 0.6 percent to $4,350.80.
A stronger US dollar also weighed on gold. The dollar climbed to its highest level in two months, making the metal more expensive for buyers using other currencies.
Gold has remained within a narrow range of around $4,300 to $4,400, with traders watching US interest rates, bond yields, the dollar and oil prices for fresh direction, according to Saxo Bank’s head of commodity strategy Ole Hansen.
Expectations of higher US interest rates have also reduced some of gold’s appeal. The US Federal Reserve raised its benchmark rate by 25 basis points last week to 3.75 percent to 4 percent, while leaving the door open for another increase before the end of the year.
Traders are currently pricing in a 53 percent chance of a rate hike in October, according to the CME FedWatch Tool.
In Pakistan, silver prices also moved lower. The price of silver fell Rs30 to Rs7,008 per tola.
Other precious metals also declined internationally, with silver down 2.9 percent, platinum falling 2.8 percent and palladium losing 2.1 percent.
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