ISLAMABAD: Gold prices in local market recorded a gain of Rs100 per tola.

The price of 24 karat per tola gold witnessed an increase of Rs100 and was sold at Rs126,30 in the local market on Monday against its sale at Rs126,200 the previous day.

The price of 10 gram 24 karat gold also appreciated by Rs 86 to Rs108,282 from Rs108,196 whereas that of and 10 gram 22 karat went up from Rs 99,180 to Rs 99,258.

The price of per tola and ten gram silver in local market remained unchanged at Rs1460 and Rs 1251.71 respectively.

In international markets gold prices fell more than 1% on Monday as a risk-on rally in equities pressured bullion, with investors shrugging off concerns around the impact of the Omicron coronavirus variant.

Spot gold dipped 1.6% to $1,798.97 an ounce by 11:09 a.m. EDT (1609 GMT), set for its biggest one-day percentage decline in more than a month. U.S. gold futures fell 1.4% to $1,802.20.

Rising yields, a firmer dollar and improved risk sentiment are boosting equities, collectively putting pressure on the gold market, said Bob Haberkorn, senior market strategist at RJO Futures.

Also pressuring gold by making it more expensive for overseas buyers, the dollar rose against a basket of major currencies, tracking government bond yields as investors anticipate the U.S. Federal Reserve will stay on its path of interest rate hikes in 2022.

Gold prices marked their biggest yearly fall since 2015 in 2021, ending the year down 3.6%.

UBS analyst Giovanni Staunovo said rising U.S. interest rates and declining U.S. inflation over the course of 2022 could weigh on gold, forecasting a price of $1,650 at the end of the year.

Some investors view gold as a hedge against higher inflation, but bullion is highly sensitive to rising U.S. interest rates, which increase the cost of holding the commodity.

Silver dropped 2.1% to $22.77 an ounce, platinum fell 1.8% to $945.50 and palladium slid 1.4% to $1,866.05.