Gold prices in Pakistan edged lower on Saturday after international bullion rates came under pressure, reversing part of the sharp gains recorded a day earlier.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold fell by Rs1,100 per tola, bringing it down to Rs439,836.
The price of 10 grams of gold also dropped by Rs943 and settled at Rs377,088.
The decline came after a strong rally on Friday, when gold surged by Rs12,200 per tola to close at Rs440,936.
In the global market, gold slipped by $11 per ounce to $4,174, including a premium of $20. The softer international trend was reflected in local prices.
Silver also moved lower in the domestic market. The price per tola fell by Rs48 to Rs6,716.
Although international gold prices eased slightly on Saturday, the precious metal remained on track to post its first weekly gain in five weeks as weaker than expected US employment data strengthened hopes that interest rates may stay lower for longer.
Spot gold was trading at around $4,174 per ounce after touching its highest level since June 23. The metal has gained more than 2 percent so far this week, recovering after four consecutive weekly losses.
US gold futures for August delivery also moved higher to $4,186.80 per ounce.
The market reacted after fresh data showed the US economy added just 57,000 jobs last month, well below the 110,000 forecast by economists. The weaker hiring figures reduced expectations of another interest rate increase by the US Federal Reserve in the near future.
Han Tan, Chief Market Analyst at Bybit, said the slowdown in hiring provided fresh support to gold as investors scaled back expectations of a September rate hike.
Market pricing now points to a 54 percent chance of a rate increase in September, down from 66 percent before the jobs report, according to the CME FedWatch Tool.
Gold usually benefits from lower interest rates because it does not pay interest. A weaker US dollar also helped support prices, making gold less expensive for buyers using other currencies.
Adding to the positive outlook, the World Gold Council said central banks purchased a net 41 metric tonnes of gold in May. While some countries have recently sold part of their reserves to support their currencies, central banks are still expected to remain an important source of demand for gold in the long run.
