Gold price bounced back Wednesday as bargain hunters took advantage of recent uncertainty, but the precious metal's outlook was still clouded by prospects of aggressive rate hikes next week.

According to the data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of the precious metal rose by Rs2,100 per tola and Rs1,801 per 10 grams to settle at Rs186,500 per tola and Rs159,894 per 10 grams, respectively.

The association reported that the price of gold has been “overcost” by Rs2,000 per tola in Pakistan, as compared to prices in Dubai. This means that, at present, the Pakistani gold market is more expensive than the world market.

Meanwhile, silver prices in the domestic market rose by Rs30 per tola and Rs16.78 per 10 grams to settle at Rs2,100 and Rs1,817.19.

In the international market, the gold reversed course to trade higher on Wednesday as the US dollar pulled back from session highs and expectations of a slower pace of Federal Reserve rate hikes supported prices above the $1,900 threshold. The price settled at Rs1,909 per ounce after an increase of $6.