Gold prices in Pakistan witnessed a significant fall for the second straight session on Wednesday, as rupee continued to gain ground against the US dollar in the open market.

The price of 24-carat bar settled at Rs222,300 per tola, after a single-day decrease of Rs10,500 per tola, according to rates shared by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA).

The Pakistani rupee continued to strengthen against the US dollar in the open-market, and was selling at 318 during trading on Wednesday, as gap with the inter-bank rate narrowed further.

The rates of gold in Pakistan closely follow trajectory of the US dollar and international rates of the commodity as the country remains a net importer of the precious metal.

On Tuesday, gold prices in Pakistan had declined by Rs6,300 per tola.

Meanwhile, currency dealers attributed the halt in currency’s fall in the open market to Chief of Army Staff (COAS) Asim Munir’s recent meetup with the business community on Sunday.

During the meeting, the army chief discussed the government’s economic plans and intentions to quell smuggling and speculative activity.

Economic uncertainty in the country, high inflation, and devaluation have collectively affected gold retailers to a great extent.

“People are not buying jewellery as their purchasing power has shrunk because of inflation,” according to a local dealer.

Investors move to gold as they seek a safe-haven at a time when the local currency loses its value. This has resulted in a significant demand for raw gold.

The price of 10 gram gold on Wednesday also decreased by Rs9,002 to Rs190,586.

In the international market, the price of the precious metal declined by $5 to $1,926 per ounce.

Silver rates decreased by Rs100 to Rs2,700 per tola.