Gold prices in Pakistan fell sharply on Friday, dropping by Rs6,500 per tola as international bullion rates slid. The All Pakistan Sarafa Gems and Jewellers Association set 24-karat gold at Rs429,136 per tola, down from Rs435,636 the previous day.

A sharp reversal after two days of gains

The fall reversed two consecutive days of gains in the domestic market. Ten grams of 24-karat gold dropped by Rs5,573 to Rs367,914, from Rs373,487. Silver followed the same direction, falling by Rs85 per tola to Rs5,678, from Rs5,763.

Global prices drive the fall

Bullion traders linked the decline to falling international prices. Gold in the world market dropped by $65 an ounce to $4,066. Market watchers said precious metals came under pressure amid developments around tensions with Iran and the United States mid-term elections, which shifted investor sentiment.

Some relief for buyers

The fall offers some relief to buyers after the previous session's higher rates, though jewellers note that prices can move quickly and buyers should confirm the rate before purchasing. The association said local gold prices are linked to international rates through the interbank exchange rate published by the State Bank of Pakistan.

A volatile week for bullion

Gold has swung sharply in Pakistan in recent days, climbing for two sessions before Friday's drop, and traders say the direction of international prices and the rupee-dollar rate will decide where local rates head next.