Bullion weakens as easing geopolitical tensions reduce safe-haven demand
KARACHI, June 18, 2026 — Gold prices in Pakistan declined by Rs2,300 per tola on Thursday as domestic bullion markets tracked weakness in international prices amid shifting global economic conditions and easing geopolitical tensions.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold settled at Rs452,936 per tola, compared with Rs455,236 in the previous session.
The price of 24-karat gold per 10 grams also decreased to Rs387,615, reflecting continued mild pressure in the local bullion market.
International Gold Prices Edge Lower
In global markets, gold prices slipped by $23 to $4,305 per ounce as trading remained largely range-bound.
Market analysts said the decline reflected improved investor risk appetite, supported by easing geopolitical tensions and expectations of more stable global economic conditions.
Reports of diplomatic progress between the United States and Iran have reduced concerns over supply disruptions, weakening demand for safe-haven assets such as gold.
Shifting Investor Sentiment
Analysts noted that gold prices remain highly sensitive to global risk sentiment, inflation trends, and interest rate expectations.
While easing geopolitical tensions have reduced short-term demand for safe-haven assets, broader uncertainty continues in global financial markets due to inflationary pressures and monetary policy direction.
Investors are closely monitoring upcoming signals from the US Federal Reserve, particularly regarding interest rate decisions that could impact bullion demand and pricing trends.
Outlook Remains Uncertain
Despite the recent decline, analysts expect gold prices to remain volatile in the near term as markets react to geopolitical developments and macroeconomic data releases.
In Pakistan, domestic bullion prices are expected to continue following international trends closely, with any change in global sentiment likely to be reflected quickly in local markets.
Overall, traders remain cautious as gold continues to trade within a narrow but sensitive range influenced by global economic and political developments.
