The per tola price of 24 karat gold decreased by Rs1,500 and was sold at Rs 217,500 on Friday against its sale at Rs218,500 the previous day.
The price of 10 grams of 24 karat gold also decreased by Rs1,285 to Rs186,043 from Rs187,328 whereas the price of 10 grams 22 karat gold went down to Rs170,539 from Rs171,718, All Sindh Sarafa Jewellers Association reported.
The price of per tola and 10 gram silver remained constant at Rs2,550 and Rs2,186.21 respectively.
The price of gold in the international market declined by $10 to $1919 from $1929, the association reported.
Gold prices were en route to their worst week since early February on Friday as the dollarstrengthened after US Federal Reserve Chief Jerome Powell reiterated that more interest rate hikes were in the offing, Reuters reported.
Spot gold was up 0.2% to $1,917.57 per ounce by 0956 GMT, yet stayed close to a three-month low hit earlier in the session. Prices are down 2.1% for the week.
US gold futures gained 0.3% to $1,928.50.
“Gold is clearly an asset in demand and but taking a short-term view on where the price is today, we still think there’s a little bit room for gold to underperform,” said Edward Gardner, commodities economist at Capital Economics.
Making bullion more expensive for holders of other currencies, the dollar was up 0.7% and bound for its first weekly rise in four.
Powell, in his second day of testimony, said the Fed would continue to raise interest rates at a “careful pace.”
The market now sees a 77% chance of a 25 basis points rate hike in July, with cuts seen only 2024 onwards.
“While we do not see the need for further rate increases, we do not expect an increase in gold and silver investment demand either, due to the resilience of the US economy and the high levels of interest rates, which are offering other alternatives to safe-haven seekers,” said Carsten Menke, Head Next Generation Research, Julius Baer.
Interest rate hikes raise the opportunity cost of holding non-yielding bullion.
Spot silver rose 0.4% to $22.32 per ounce, but was set for its biggest weekly drop since October 2022. Platinum was up 0.1% to $923.50.
The strength of the dollar and concerns about China’s industrial sector and economy as a whole have contributed to silver’s decline, Gardner said.
Palladium edged up 0.4% to $1,288.42 after hitting its lowest since May 2019 on Thursday.
