KARACHI: Gold prices extended declines on Tuesday after a retreat in international oil prices and planned diplomatic talks between Russia and Ukraine boosted risk appetite.
According to the All Sindh Sarafa Jewellers Association (ASSJA), gold prices in the local bullion market dropped by Rs1,350 per tola to reach Rs129,200, while the price of 10 grams gold decreased by Rs1,157 to reach Rs110,768.
A day earlier, the precious commodity closed at Rs130,550per tola and Rs111,925 per 10 grams.
Accordingly, the gold price for local markets is determined by keeping in view its prices in world markets, rupee-dollar exchange rate, and its demand and supply in local markets.
In the international market, bullion prices plunged by $41 per ounce to settle at $1,925 as bets that the US Federal Reserve may raise interest rates for the first time in three years added to pressure on gold.
Gold rates in Pakistan are around Rs4,000 below the cost compared to the rate in the Dubai market.
