Gold prices in Pakistan fell on Monday, tracking a decline in the international bullion market as investors weighed fresh Middle East tensions and expectations of higher US interest rates.
The price of gold fell by Rs1,800 per tola to Rs466,136, according to rates released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price of 10-gram gold also dropped by Rs1,543 to Rs399,636.
The decline followed a sharp correction on Saturday, when the price of gold fell Rs15,100 per tola to Rs467,936.
In the international market, gold dropped $18 to $4,436 per ounce, including a $20 premium.
Gold came under pressure after hawkish remarks from US Federal Reserve Chair Kevin Warsh raised expectations that interest rates could remain higher for longer. Renewed tensions between the US and Iran also added to inflation concerns, supporting the case for tighter monetary policy.
Spot gold was down 0.4 per cent at $4,436.04 an ounce by 0835 GMT, after touching its lowest level since August 19. US gold futures for December delivery fell 1 per cent to $4,486.40.
Gold had suffered its biggest one-day fall since June 10 on Friday, dropping more than 3 per cent after Warsh said the Federal Reserve would have more work to do if inflation was not clearly returning to its 2 per cent target.
Despite the recent losses, gold remains up more than 10 per cent this month. It had climbed to a three-month high of $4,696.18 an ounce last week.
Market attention is now turning to US employment data due later this week, which could offer fresh clues about the Federal Reserve’s next rate decision.
Meanwhile, silver prices in Pakistan increased by Rs67 to Rs7,179 per tola.
In the international market, spot silver rose 1 per cent to $66.99 an ounce and was up more than 16 per cent for the month. Platinum fell 1.1 per cent to $1,799.89, while palladium declined 1.3 per cent to $1,403.92.