Karachi: Gold prices in Pakistan retreated on Thursday as investors sought cover from Omicron-led uncertainty, inflation and its impact on the economy.
Prices of the precious commodity fell by around Rs 550 per tola and Rs 472 per 10 grams to settle at Rs 126,600 per tola and Rs 108,539 per 10 grams, respectively.
The safe-haven asset gained Rs 1,300 per tola in the past four sessions.
However, gold traders said there was no demand in the local market due to lack of purchasing power.
Meanwhile, gold remained above the key $1,800 an ounce level in international markets despite a $33 drop. Prices settled at $1,812.
Gold extended losses on international markets to a more than one-week low after Federal Reserve Chairman Jerome Powell hinted at a rate hike in March, as the dollar and Treasury yields rose.
Higher interest rates will raise the opportunity cost of holding non-yielding gold, but prices have remained underpinned recently on the back of ongoing tensions in Ukraine and safe-haven demand from market volatility.
It is worth mentioning that the price of gold in Pakistan is about Rs 2,000 below cost compared to the price of gold in the Dubai market.
Meanwhile, silver prices in the domestic market remained unchanged at Rs 1,470 per tola and Rs 1,260.28 per 10 grams today.