Volatile international bullion markets outweigh safe-haven demand amid geopolitical uncertainty\

ISLAMABAD: Gold prices in Pakistan declined by Rs3,900 per tola on a weekly basis despite continued geopolitical tensions in the Middle East, as volatility in international bullion markets weighed on domestic prices.

According to the All Pakistan Gems and Jewellers Association (APGJA), the price of 24-karat gold settled at Rs433,536 per tola on Saturday, July 11, 2026, compared with Rs437,436 per tola recorded on Monday, July 6, reflecting a weekly decline of Rs3,900.

The price of 24-karat gold per 10 grams also fell by Rs3,343 during the week to Rs371,687, down from Rs375,030 at the beginning of the week.

International Bullion Market Remains Volatile

The decline in gold prices in Pakistan came during a week of sharp fluctuations in international bullion markets as investors responded to renewed geopolitical tensions in the Middle East.

Although geopolitical uncertainty typically boosts demand for safe-haven assets such as gold, shifting investor sentiment and volatile international bullion prices limited gains and contributed to weaker domestic prices.

Domestic Gold Prices Track Global Trends

Bullion dealers said gold prices in Pakistan continue to closely follow movements in international markets while also reflecting fluctuations in the Pakistani rupee against the U.S. dollar and changes in local demand.

Analysts said investors will continue to monitor geopolitical developments, central bank policy decisions, inflation expectations and currency movements, which are expected to remain the key drivers of gold prices in both global and domestic markets.

Despite the weekly decline, market participants expect bullion prices to remain highly sensitive to international economic and geopolitical developments in the coming weeks.