Gold prices in Pakistan registered a sharp decline on Tuesday, mirroring the downtrend in the international market where bullion slipped nearly 2% to hit a more than two-week low as geopolitical tensions cooled. The global drop came as investor demand for safe-haven assets eased following Trump's announcement of a ceasefire between Iran and Israel.
In the domestic market, the price of 24-karat gold fell by Rs3,800 per tola to settle at Rs354,365, according to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Similarly, the price of 10-gram gold dropped by Rs3,258 to reach Rs303,810.
On the previous day, gold had posted a modest decline of Rs300 per tola, closing at Rs358,165.
"There had been talk of a correction for several days and with tensions easing, the metal is now gradually retreating," said Adnan Agar, Director at Interactive Commodities, noting that gold was trading lower after geopolitical tensions subsided.
Gold touched a high of $3,357 an ounce and a low of $3,303 on Tuesday and is still hovering near its lower range. The key support zone lies between $3,300 and $3,290. "A breach below this level could push the market down towards $3,200," he said.
Agar indicated that if the geopolitical situation remains stable, gold prices may continue their downward correction, potentially sliding to $3,000 or even $2,800.
Meanwhile, the Pakistani rupee registered a slight gain against the US dollar in the inter-bank market on Tuesday, appreciating by 0.04%. By the close of trading, the local currency settled at 283.77 against the greenback, marking an improvement of 10 paisa from the previous session's close at 283.87.
In the global market, the US dollar weakened while the Australian and New Zealand dollars strengthened after US President Donald Trump announced a ceasefire deal between Israel and Iran. The development boosted investor sentiment and triggered a risk rally across international markets.
Moreover, Pakistan's broad money (M2) grew by 0.9% on a week-on-week (WoW) basis to Rs38.4 trillion as of June 13, 2025, according to data released by the State Bank of Pakistan (SBP).
The increase was mainly driven by a 1% WoW rise in total deposits with banks, which climbed to Rs27.5 trillion. Meanwhile, currency in circulation (CIC) edged higher by 0.7% WoW, standing at Rs10.9 trillion.
On a month-on-month (MoM) basis, the broad money expanded by 3.2% while year-on-year (YoY) growth stood at 11.6%. So far in 2025, M2 has posted an increase of 7.9%.
Currency in circulation surged 5.3% MoM and 17.4% YoY, reflecting higher cash demand after Eid holidays. Total deposits grew 2.3% MoM and 9.6% YoY during the period.
Other deposits with the SBP, however, declined 3.2% WoW and 13% MoM, marking a sharp 30.6% fall on a yearly basis.
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