In the local market, the precious stone was sold at Rs261,500 on Thursday compared to its sale at Rs263,700 on last trading day, the All Sindh Sarafa Jewellers Association reported.

The price of 10-gram 24 karat gold also decreased by Rs1,886 to Rs224,194 from Rs226,080 of last trading day, it added.

The price of 10-gram 22-karat gold went down to Rs205,511 from Rs207,240.

The price of per tola and 10-gram silver remained unchanged at Rs2,950 and Rs.2,529.14, respectively.

FX Street reported that gold price recovers some lost ground on Thursday after bouncing off the weekly lows in the sub-$2,500 region per troy ounce. The expectation of US interest rate cuts might lift the Gold demand as lower interest rates reduce the opportunity cost of holding non-yielding gold. Additionally, the current political uncertainty in the US, geopolitical tensions in the Middle East and global economic concerns contribute to the precious metal’s upside.

On the other hand, it further said, the renewed US Dollar (USD) demand could weigh on the USD-denominated Gold price as it makes gold more expensive for most buyers. Investors will closely monitor the second estimate of the US Gross Domestic Product for the second quarter (Q2) on Thursday for more cues about the size and pace of the Federal Reserve (Fed) rate cut. On Friday, the US Personal Consumption Expenditures (PCE) Price Index data for July will take center stage.