The gold prices fell by Rs2,200 on Tuesday, following Pakistan’s deal with the International Monetary Fund last week. Though the agreement is subject to the executive board’s approval, the development has had a positive impact on the economy.

After the decrease, market dealers said that the rate of gold per tola came to Rs205,000. While the price of 10 grams of gold fell by Rs1,887 and reached Rs175,754.

But gold prices edged higher in the international market on Tuesday as some traders bet that recent weak US economic data may prompt the Federal Reserve to rethink its rate-hike trajectory, while also awaiting further cues from the minutes of the central bank’s last meeting.

Spot gold rose 0.4% to $1,928.09 per ounce by 09:31am EDT (1331 GMT), with trading volumes likely thinned by a US holiday. US gold futures gained 0.3% to $1,935.90.

(With input from Reuters)