The price of gold increased by Rs800 per tola in the local market in Pakistan after the rupee tumbled against the dollar in the interbank market on Monday.

The price of the precious metal gained Rs800 to reach Rs209,000 per tola. Similarly, gold 10 grams increased by Rs686 to hit Rs179,184 in the domestic market.

The local currency remained under pressure as the demand for the dollar was high for import payments.

Gold is considered a safe haven for investors to safeguard their investments when the currency market is volatile.

The local unit dipped in the interbank market as it declined by Rs1.9 to reach Rs Rs279.8 against the closing of Rs277.9 on Friday, according to the State Bank of Pakistan.

The renewed pressure on the local currency came as the demand for the greenback was on the rise after the government allowed the opening of letter-of-credit (LCs) for the imports of raw materials, said Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan.

In the international market, gold bullion held its ground and was trading at $1,925 on Monday.