According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold dropped by Rs2,000 per tola, settling at Rs396,800.

The rate of 10 grams slipped Rs1,714 to Rs340,192. A day earlier, the per tola price had remained unchanged at Rs398,800.

In the global market, gold prices eased to $3,750 per ounce (with a $20 premium), down $20, as reported by APGJSA.

However, international spot gold later held steady at $3,734.04 per ounce as of 0202 GMT, with US gold futures for December delivery flat at $3,765.20.

Meanwhile, silver prices in Pakistan recorded an increase of Rs26 per tola, reaching Rs4,663.

Internationally, bullion was supported by a slightly weaker US dollar index, which slipped 0.1%, making dollar-priced gold less expensive for overseas buyers.

Investors are now awaiting key US economic data for further direction on Federal Reserve policy.