KARACHI (National Times)- Gold prices extended declines on Tuesday after a retreat in international oil prices and rupee depreciation against the US dollar boosted risk appetite.

According to the All Sindh Sarafa Jewellers Association (ASSJA), gold prices in the local bullion market dropped by Rs1,400 per tola to reach Rs130,000, while the price of 10 grams of gold decreased by Rs1,200 to reach Rs111,453.

A day earlier, the precious commodity closed at Rs131,400per tola and Rs112,654 per 10 grams.

Speaking to Geo.tv, a gold dealer said that Pakistan remains a small market for gold at the global level. It meets the commodity’s demand through imports as it does not produce the commodity locally.

Accordingly, the gold price for local markets is determined by keeping in view its prices in world markets, the rupee-dollar exchange rate, and demand and supply in local markets.

In the international market, bullion prices rose $2 per ounce to settle at $1,955.

Gold rates in Pakistan are around Rs5,000 below the cost compared to the rate in the Dubai market.

Meanwhile, silver prices in the domestic market remained unchanged at Rs1,520 and Rs1,303.15 today.