Gold prices in Pakistan fell sharply on Saturday, with the local market following another drop in international bullion prices.
The price of gold fell by Rs4,300 per tola to Rs436,336, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also dropped by Rs3,687 to Rs374,087.
The decline comes a day after gold gained Rs2,000 per tola. On Friday, the price had closed at Rs440,636.
The international price of gold also fell, dropping $43 to $4,138 per ounce.
Silver prices moved lower as well. The price of silver fell by Rs56 per tola to Rs6,522 in the local market.
Why gold prices are falling
Gold also came under pressure in global markets as higher US Treasury yields and a stronger dollar weighed on demand for the precious metal.
Spot gold fell 0.9 percent to $4,140.06 per ounce on Friday and was down about 3.4 percent for the week. US gold futures settled 1 percent lower at $4,162.30.
The dollar was heading for a weekly gain, while yields on 10-year and 30-year US Treasury bonds reached their highest levels since 2002 earlier in the week.
Gold had briefly gained more than 1 percent after fresh US jobs data showed that employment growth slowed more than expected in September. However, the metal later gave up those gains as investors weighed the wider outlook for US interest rates.
US employers added only 29,000 jobs in September, well below the 90,000 increase expected by economists polled by Reuters. August’s job growth was also revised down to 133,000.
A weaker jobs market can support gold if it increases expectations of lower interest rates. But investors remain cautious about the Federal Reserve’s next move.
Bybit chief market analyst Han Tan said gold investors were holding back because the US central bank still had a hawkish stance.
Gold has also faced pressure in recent months after rising sharply earlier in the year. It has fallen more than 20 percent since the US-Israeli war with Iran began in late February, as concerns over inflation kept expectations for higher interest rates alive.
Recent US inflation data has been softer than expected, while some Federal Reserve officials have opposed another rate hike this month. Markets now see a much lower chance of a rate increase than earlier in the week.
Other precious metals also declined on Friday. Spot silver fell 0.8 percent to $60.36 an ounce, while platinum dropped 2 percent to $1,692.90 and palladium fell 0.5 percent.
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