Gold prices were subdued on Wednesday in choppy trade as a rupee appreciation and the prospect the central bank could raise interest rates after record high inflation kept investors on edge.

The price of gold — considered a safe haven — plummeted by Rs3,500 per tola and Rs3,001 per 10 grams to settle at Rs154,900 and Rs131,945 in the local market, data released by the All Sindh Saraf and Jewellers Association (ASSJA).

The gold hit an all-time high of Rs162,500 per tola on July 28.

It should be noted that the gold price is standing below cost. Gold is cheaper by Rs3,000 per tola compared to its price in Dubai.

The latest price for local markets was determined to keep in view the prices at which trades took place among buyers and sellers.

In the international market, bullion prices increased by $6 per ounce to settle at $1,780 as the US dollar inched higher, although a dip in Treasury yields and growing recession fears kept bullion near four-week peak.

Meanwhile, silver prices in the domestic market gained Rs10 per tola and RS8.57 per 10 grams to settle at Rs1,640 per tola and Rs1,460.03 per 10 grams today.