Gold prices in Pakistan dropped sharply on Saturday, tracking losses in the international market as a stronger US dollar weighed on bullion.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell by Rs3,700 per tola, bringing it down to Rs426,736.
The price of 10 grams of gold also declined by Rs3,202 to Rs365,857.
The fall came a day after gold had climbed by Rs3,000 per tola to settle at Rs430,436 in the local market.
Internationally, gold prices also moved lower. The global benchmark price fell by $37 to $4,043 per ounce, including a premium of $20, reflecting weaker demand after the US dollar regained strength.
Silver also followed the downward trend. Its price in Pakistan slipped by Rs57 to Rs6,237 per tola.
In the global market, spot gold was down about 1.3 percent at $4,049.83 per ounce by Friday afternoon after falling as much as 2 percent earlier in the session. US gold futures also lost 1.3 percent to settle at $4,107 per ounce.
Despite Friday’s decline, gold was still on course to post its first monthly gain in five months, rising around 1.1 percent in July. The recovery was supported by softer US inflation data, which prompted investors to lower expectations of further interest rate increases by the Federal Reserve.
Analysts said the precious metal has struggled to move convincingly above the key $4,000 per ounce mark, although expectations that the Federal Reserve could take a broader approach to inflation and monetary policy have continued to provide support.
Meanwhile, the US dollar steadied after suffering its biggest one day decline since January 2023 earlier this week. A stronger dollar typically makes gold more expensive for buyers using other currencies, reducing demand and putting pressure on prices.
Other precious metals also ended lower, with spot silver falling 2.1 percent, while platinum and palladium recorded modest declines.
