Gold prices plunge in Pakistan as US, Iran presidents sign ceasefire agreement
- By Anjum Wahab -
- Jun 18, 2026
KARACHI: Gold prices in Pakistan declined on Thursday, June 18, 2026, in line with a downward trend in the international bullion market amid easing geopolitical tensions in the Middle East.
The development came after the US and Iran presidents have electronically signed a memorandum of understanding to extend their ceasefire and reopen the Strait of Hormuz.
According to rates issued by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of 24-karat gold per tola fell by Rs2,300 to Rs452,936.
Similarly, the price of 10 grams of 24-karat gold decreased by Rs2,070 to Rs387,615.
In the international market, gold prices slipped by $23 per ounce to settle at $4,305.
Silver prices also declined in the local market, with the price of silver per tola dropping by Rs144 to Rs7,359.
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Market analysts attributed the decline in precious metal prices to improving investor sentiment following diplomatic progress between the United States and Iran, including efforts aimed at maintaining regional stability and ensuring the continued flow of maritime trade through the Strait of Hormuz.
The easing of geopolitical concerns reduced demand for safe-haven assets such as gold, putting downward pressure on prices in global and local markets.
Despite short-term fluctuations, analysts remain optimistic about gold’s long-term prospects, citing its traditional role as a hedge against inflation, currency depreciation and geopolitical uncertainty.
Read More: US and Iran presidents sign ceasefire agreement
Investors continue to closely monitor developments in the Middle East, including efforts to preserve ceasefire arrangements and ongoing diplomatic engagement involving regional and global powers.
Meanwhile, Prime Minister Shehbaz Sharif welcomed the signing of the Islamabad Memorandum of Understanding between the United States and Iran. In a statement posted on X, the prime minister described the agreement as a positive step toward regional peace and stability.