The price of gold in Pakistan dropped by another Rs 1500 as the government is all set to announce a progressive budget.

According to Sindh Sarafa (goldsmiths) Association, the price of gold dropped by Rs1,500 per tola and settled at Rs 140,900 per tola while the price of gold per 10 gram decreased by Rs1,285 and settled at Rs120,800.

Earlier on Tuesday, the precious commodity hit a record high of Rs143,250 per tola amid rising inflation and depreciation of the Pakistani rupee against the US dollar during the first four days of the week.

The current decline in the prices of the precious metal came after the recovery of the rupee against the US dollar in the interbank market.

Gold is considered a hedge against soaring inflation and is often used as a safe store of value during times of political and economic uncertainty.

In the international market, the price of the yellow metal remained unchanged at $1,848 per ounce.

Meanwhile, silver prices in the local market remained unchanged at Rs1,570 per tola and Rs1,346.02 per 10-gram on Thursday.