Karachi, June 24, 2025 – Gold prices in Pakistan witnessed a significant drop on Tuesday following the announcement of a ceasefire agreement between Iran and Israel.
The development brought a wave of relief to global markets, triggering a sharp correction in safe-haven assets like gold.
According to data released by local bullion markets, the price of 24-karat gold per tola declined by Rs3,800, closing at Rs354,365 compared to the previous day’s rate of Rs358,165. Similarly, the price of 24-karat gold per 10 grams fell by Rs3,258, ending at Rs303,810 from Rs307,068. This marks one of the steepest single-day declines in recent months.
Market experts attributed the sharp fall in gold prices in Pakistan to the geopolitical easing following the ceasefire between Iran and Israel. The truce reduced investor demand for gold as a safe-haven asset, encouraging a shift toward riskier financial instruments like equities and foreign currencies.
Gold, which had touched an all-time high of Rs363,700 per tola in Pakistan on April 22, 2025, had been under consistent upward pressure due to global tensions and inflationary concerns. The Iran-Israel conflict had been one of the major drivers behind the surge in precious metal prices, not just in Pakistan but across international markets.
In the global market, gold also saw a notable decline of $39 per ounce, closing at $3,327 from the previous day’s $3,366. International bullion traders linked the decline to the positive impact of the ceasefire, which helped stabilize oil prices and reduce overall market volatility.
Analysts in Pakistan noted that while the ceasefire has temporarily calmed geopolitical risks, the future trajectory of gold prices will depend on the sustainability of peace in the region and the broader economic indicators. In particular, Pakistan’s domestic gold market remains sensitive to currency fluctuations and changes in global commodity trends.
With the ceasefire easing fears of regional escalation, gold prices in Pakistan may continue to face downward pressure in the near term—offering a window of opportunity for buyers, though uncertainty still lingers over how long the calm will last.