Gold prices saw a significant dip on Monday in local and international markets,

The price of one tola of gold now stands at Rs362,300, with a drop of Rs700, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).

The decline is attributed to a reduction in global gold rates, which dropped by $18 per ounce.

The international market saw a decline, bringing the price of gold to $3,414 per ounce.

Similarly, the price of 10 grams of gold has also decreased by Rs600, now standing at Rs310,613.

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Gold fell on Monday as investors weighed the impact of the ongoing Israel-Iran conflict, while also focusing on the Group of Seven leaders meeting and the Federal Reserve policy decision later this week.

Spot gold fell 0.5% to $3,415.36 an ounce, as of 0854 GMT, after hitting its highest level since April 22 earlier in the session.

"Geopolitical tensions are not disappearing near term, as well rates are likely to be cut further by the central bank, so that should provide a floor to gold," said Giovanni Staunovo, an analyst at UBS.

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Iranian missiles struck Israel's Tel Aviv and the port city of Haifa before dawn on Monday, killing at least eight people and destroying homes.

The dangers of further escalation loomed over a summit of G7 leaders in Canada, with US President Donald Trump expressing hope on Sunday that a deal could be done but no sign of the fighting abating on the fourth day of the conflict.