KARACHI, May 26 -- Gold prices in Pakistan dropped significantly on Monday, following a downward trend in the international market.

According to the All Pakistan Gems and Jewellers Association, the price of 24-karat gold per tola decreased by Rs2,600, bringing it down to Rs351,500. The price of 10 grams of gold also saw a decline of Rs2,228, now standing at Rs301,354.

Jewellers say the decline reflects easing global demand and investor caution as international economic signals remain mixed. In addition, a slightly stronger Pakistani rupee has also played a part in adjusting local prices downward.

In the international bullion market, gold prices fell by $26, settling at $3,331 per ounce, amid profit-taking and a strengthening US dollar....