The price of gold recorded an increase of Rs300 in the domestic market of Pakistan as per tola gold hit Rs218,600 on Friday.

Similarly, the price of gold per 10 grammes increased by Rs257 to settle at Rs187,414 in the local market.

Meanwhile, the Pakistani rupee gained 25 paisas against the dollar in the interbank foreign exchange market.

The greenback was trading at Rs283.26 at the closing of the market, as against the closing of Rs283.51 the previous day.

In the international market, gold prices were set on Friday for a weekly gain, as prospects of the US Federal Reserve lowering borrowing costs next year dented the dollar and Treasury yields, boosting demand for the safe-haven asset, Reuters reported.

Spot gold XAU= held its ground at $2,035.88 per ounce, and has risen 1.6% so far in the week. US gold futures rose 0.3% to $2,050.