Gold prices experienced a notable decline in Pakistan and international markets on June 16, 2025, with the price per tola dropping to Rs362,300, a Rs700 decrease, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Globally, gold fell by $18 to $3,414 per ounce, driven by the Israel-Iran conflict and upcoming economic events, as reported by Reuters.
In Pakistan, the APSGJA reported a Rs600 reduction in the price of 10 grams of gold, now at Rs310,613. Internationally, spot gold dropped 0.5% to $3,415.36 per ounce by 0854 GMT, after briefly hitting its highest level since April 22. The decline reflects investor caution amid geopolitical tensions and anticipation for the Group of Seven (G7) leaders’ meeting and the Federal Reserve’s policy decision this week.
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The ongoing Israel-Iran conflict, intensified by Israel’s strikes on June 13, has contributed to market volatility. While gold initially surged as a safe-haven asset, profit-taking and focus on global economic indicators led to the dip. Posts on X noted, “Gold prices are swinging wildly with Middle East tensions,” reflecting investor uncertainty. Rising oil prices from the conflict also raise inflation concerns, impacting gold’s appeal.
Analysts attribute the price drop to a stronger U.S. dollar and expectations around the Federal Reserve’s interest rate decisions. Higher rates typically reduce gold’s attractiveness, as it yields no interest. The G7 meeting will address global trade and energy policies, further influencing commodity markets.
The decline in gold prices affects investors, jewellers, and consumers in Pakistan, where gold is a key asset for savings and weddings. Globally, it signals economic and geopolitical uncertainties.
