The gold price increased by Rs1,000 to reach Rs206,000 per tola in the local market of Pakistan on Wednesday, while the price of 10 grams of gold moved by Rs858 to reach Rs176,612.

The latest hike in the price of gold comes after it fell by Rs2,200 on Tuesday, following Pakistan’s agreement with the International Monetary Fund last week.

However, in the international market, the gold bullion declined by $1 to clock-in at 1,982 per ounce.

The rupee also declined in the interbank foreign exchange market on Wednesday as the dollar was up 0.71%.

The local currency shed Rs1.97 to Rs277.41 against the dollar. It closed at Rs275.44 on Tuesday.

The rupee recorded significant gains against the greenback the previous day after Pakistan and the IMF reached a Stand-by Agreement of $3 billion for nine months. However, global rating agencies warned of significant risks to Pakistan’s financial abilities, which dented the investors’ confidence.