Gold prices fall by Rs10,800 per tola in Pakistan

KARACHI: Gold prices in Pakistan fell by Rs10,800 per tola on Saturday, taking the price of 24-karat gold to Rs409,736.

The price of 10 grams of gold declined by Rs8,487 to Rs322,020.

The latest drop follows a decline of Rs5,100 per tola on Friday, when gold was priced at Rs420,536. Over two days, the price of gold has fallen by Rs15,900 per tola.

The decline in domestic prices comes amid continued weakness in the international gold market.

International prices under pressure

Reuters reported on Friday that spot gold fell by around 1% to approximately $3,980 per ounce, its lowest level since July 17.

Stronger-than-expected US economic growth and accelerating inflation have strengthened expectations that the US Federal Reserve could raise interest rates in December, weighing on gold prices.

Higher interest rates generally make gold less attractive to investors because the precious metal does not generate interest income.

Gold prices in Pakistan are influenced by international bullion rates, movements in the rupee-dollar exchange rate and domestic market conditions.