Karachi witnessed a notable decline in gold prices on March 4, 2026, marking the second consecutive day of downward movement in the local bullion market. This drop closely mirrored the trends observed in the global precious metals sector, influenced by shifting economic and geopolitical factors. The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) confirmed that the price of 24-karat gold per tola fell sharply by Rs10,000, settling at Rs539,962 compared to Rs549,962 recorded in the previous session.
Alongside the tola measurement, the price of 10 grams of 24-karat gold also experienced a significant reduction, decreasing by Rs8,573 to reach Rs462,930 from Rs471,503. Similarly, 22-karat gold, which is widely used in jewelry across Pakistan, saw its 10-gram price drop by Rs7,859, closing at Rs424,367 down from Rs432,226. These declines reflect the sensitivity of Pakistan’s gold market to international price shifts, as well as the influence of currency fluctuations and investor sentiment.
In contrast to the falling gold prices, silver prices in the domestic market showed a modest upward trend. The rate for silver per tola increased by Rs100, reaching Rs9,004 from Rs8,904, while the price for 10 grams of silver rose by Rs86 to Rs7,719 from Rs7,633. This divergence between gold and silver prices highlights the complex dynamics at play in the precious metals market, where different factors can impact each metal uniquely.
On the international front, gold prices dropped by $100, falling to $5,172 per ounce from $5,272. Meanwhile, silver prices edged higher by $1, climbing to $85.20 per ounce from $84.20. The decline in gold prices globally was largely attributed to a strengthening US dollar, which tends to make dollar-denominated commodities like gold more expensive for holders of other currencies. This currency appreciation offset the usual safe-haven demand that gold enjoys amid rising geopolitical tensions, particularly the escalating US-Israeli air conflict involving Iran, which has injected considerable uncertainty into global markets.
Experts explain that the market’s focus has shifted towards inflationary risks linked to the ongoing Middle East conflict, prompting expectations of increased interest rates. Thu Lan Nguyen from Commerzbank noted that this shift in sentiment has bolstered the US dollar’s value, thereby exerting downward pressure on gold prices. Typically, gold performs best in environments characterized by low interest rates, as it is a non-yielding asset. However, despite the recent price dip, many analysts maintain a positive outlook for gold’s future trajectory.
For instance, BMI, a division of Fitch Solutions, projected that gold could surge to a new record high exceeding $5,600 per ounce, provided the Middle East conflict does not show signs of de-escalation soon. Market observers emphasize that the overall sentiment towards gold remains optimistic due to persistent global economic uncertainties and a steady demand for safe-haven assets. Gold’s intrinsic value, limited availability, and relative independence from government policies and central bank interventions make it a preferred hedge against inflation, currency devaluation, and broader financial instability.
Furthermore, geopolitical tensions—ranging from armed conflicts and trade disputes to increased market volatility—often drive investors away from riskier assets such as stocks and speculative currencies. This shift typically results in higher demand for gold, reinforcing its status as a reliable store of value during turbulent times. Historically, gold has been regarded not only as a symbol of wealth and prosperity but also as a critical financial safeguard.
In recent years, the appeal of gold as a safe-haven asset has grown stronger, attracting both institutional investors and retail buyers seeking protection against ongoing political and economic uncertainties worldwide. As Pakistan’s market responds to these global influences, the fluctuations in gold and silver prices will continue to reflect the complex interplay of international events, currency movements, and investor behavior.
