The price of per tola gold dropped by Rs200 to Rs126,800 and decreased by Rs172 to Rs108,710 per 10 grams.

The gold price in Pakistan usually depends on different factors such as USD to PKR rate and fluctuation in the international gold market.

According to GeoNews, the gold rates in Pakistan are around Rs3,500 below the cost compared to the gold rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,460 per tola and Rs1,251.71 per 10 grams.

Gold in international market

In international market, gold retreated below the $1,900 mark on Tuesday as equities pared losses despite an escalation in the Ukraine crisis that pushed safe-haven bullion to its highest in almost nine months in early trade.

Spot gold fell 0.6% to $1,895.02 an ounce by 1206 GMT, having hit its highest since June 1 at $1,913.89. U.S. gold futures fell 0.3% to $1,894.70.

Global markets clawed back losses as investors clung to hopes that Moscow's deployment of troops to two breakaway regions in eastern Ukraine will be as far Russia goes.

"There was a lot of pessimism leading into the European open," said Michael Hewson at CMC Markets UK, adding that the partial rebound in equities took some attraction out of gold.

However, Hewson also said that gold could strengthen if central banks slow their tightening cycle in response to the geopolitical backdrop.

The United States and its European allies are set to announce fresh sanctions against Russia after President Vladimir Putin recognised two breakaway regions in eastern Ukraine.Read full story

"We're seeing some profit-taking in gold also because there is obviously at this point quite an elevated risk premium baked into the price of gold," said Saxo Bank analyst Ole Hansen.

Gold is considered a hedge against inflation and geopolitical risks.

"If the Ukraine crisis escalates further, we believe that gold will remain in demand," Commerzbank analysts said in a note.

In other precious metals, spot silver <XAG=> rose 0.3% to $24 an ounce after touching its highest in a month at $24.30. Palladium <XPD=> fell 0.5% to $2,375.89, having earlier reached its highest since Jan. 31 at $2,433.

Platinum <XPT=> was up 0.4% at $1,078.84.