The prices of gold 24 carat reached Rs214,200 per tola on Tuesday as it declined Rs1,100 per tola in the local market in Pakistan.

The price of gold per 10 grammes also eased in the domestic market, hitting Rs183,642 after showing a declined Rs943/10 grammes.

The precious metal is believed to be a safe haven for investors amidst political and economic uncertainty in Pakistan. It is used as a hedge against the volatile local rupee which has been under severe pressure against the dollar.

However, a deal between Pakistan and the International Monetary Fund (IMF) is expected to provide some respite to the economy of the country.

Pakistan hopes a bailout decision from the IMF will come in a day or two, Prime Minister Shehbaz Sharif said on Tuesday, after a telephone conversation with the chief of the global lender.

Read more: IMF sends draft, agreement could come soon: reports

The country has been waiting for a deal after taking policy and fiscal tightening decisions required by the IMF for the disbursal of $1.1 billion under the lender’s ninth review of a $6.5-billion Extended Fund Facility agreed in 2019.

The rupee also showed some recovery in the interbank foreign exchange market on Tuesday as it gained 71 paisas against the dollar.

The trading in the interbank market closed at Rs285.99 to dollar, against the closing of Rs286.71 a day earlier.