Gold prices in Pakistan fell further on Tuesday as the precious metal weakened in international markets amid expectations that US interest rates could remain high for longer.
The price of gold dropped Rs1,800 per tola to Rs455,736, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also declined by Rs1,543 to Rs390,720.
Gold had already lost Rs2,700 per tola on Monday, when the local price settled at Rs457,536.
In the international market, gold fell $18 to $4,332 per ounce, while spot gold was down 0.5 percent at $4,321.74 per ounce by 1213 GMT. US gold futures also slipped 0.6 percent to $4,359.20.
The latest decline came as comments from US Federal Reserve officials strengthened expectations that borrowing costs could stay elevated for longer.
Fed officials, including St Louis Fed President Alberto Musalem and Chicago Fed President Austan Goolsbee, have pointed to the need for further rate increases to bring inflation under control.
The US central bank raised its policy rate by 25 basis points last week. Markets are now pricing in a 90 percent chance of another rate hike in December, up from 80 percent a week earlier, according to the CME FedWatch Tool.
Higher interest rates can weigh on gold because the metal does not offer interest or other regular returns. Investors may instead prefer assets that benefit from higher yields.
Market analyst Jamie Dutta said gold remained in a narrow range between $4,300 and $4,400 per ounce, while further rate increases could put additional pressure on the precious metal.
Meanwhile, silver prices in Pakistan fell Rs62 to Rs7,038 per tola.
In global markets, spot silver declined 0.7 percent to $65.57 per ounce. Platinum was little changed at $1,794.03, while palladium fell 0.3 percent to $1,297.28.
Oil prices also moved lower as concerns over possible disruption to the Strait of Hormuz eased after reports that Iran could reopen the key shipping route within seven days if the US takes steps to reduce military pressure.
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