On Monday, March 2, 2026, gold prices in Pakistan experienced a significant surge, driven by escalating geopolitical tensions in the Middle East. The rise came in the wake of Iran launching missile strikes against key Israeli locations, which sent shockwaves through international markets and heightened demand for safe-haven assets like gold. The price of 24-karat gold per tola jumped by Rs13,300, closing at Rs563,862, while 10 grams of the same purity increased by Rs11,402, reaching Rs483,420, the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Alongside gold, silver prices also saw an uptick, with the per tola rate climbing by Rs188 to Rs10,050.
The international bullion market mirrored this trend, with gold prices rising sharply by $133 to reach $5,411 per ounce. This surge reflects a broader investor shift towards precious metals amid growing fears of regional instability and its potential ripple effects on the global economy. The catalyst for this market movement was Iran’s Revolutionary Guards’ announcement of missile strikes targeting Israeli government and military installations. The strikes reportedly hit a government complex in Tel Aviv, security and military centers in Haifa, and also targeted East Jerusalem, marking a significant escalation in the ongoing conflict between Tehran and Tel Aviv.
These missile attacks were launched as a direct response to the assassination of Iran’s Supreme Leader, Ayatollah Ali Khamenei, in a joint US-Israel operation over the weekend. The Revolutionary Guards confirmed that Kheibar ballistic missiles were employed in these strikes, underscoring the severity and precision of the retaliation. This tit-for-tat exchange has intensified tensions in the Middle East, a region already fraught with longstanding conflicts and diplomatic challenges.
Earlier on Saturday, Israel and the United States conducted coordinated attacks against Iranian targets, marking an unprecedented level of military engagement between the two nations and Iran. This escalation has further complicated prospects for any diplomatic resolution to the deep-rooted disputes between Iran and Western powers. The heightened conflict has not only destabilized the region but also sent shockwaves through global financial markets, prompting investors to seek refuge in assets perceived as safe and stable.
Market analysts have highlighted that gold’s outlook remains robust in the face of ongoing global economic uncertainty. The precious metal’s intrinsic value, coupled with its limited supply and independence from government monetary policies, makes it an attractive hedge against inflation, currency devaluation, and broader economic volatility. Furthermore, geopolitical crises such as armed conflicts and trade tensions typically prompt investors to move away from riskier assets like stocks and speculative currencies, increasing demand for bullion. This dynamic often supports gold prices even during periods of economic downturn or market instability.
Historically, gold has been regarded not only as a symbol of wealth and prosperity but also as a reliable financial safeguard. Its appeal as a safe-haven asset has grown stronger in recent years, as both institutional investors and individual buyers seek protection amid persistent uncertainties on the global stage. The recent surge in gold prices in Pakistan is a clear reflection of this trend, underscoring how geopolitical developments can directly influence domestic markets and investor behavior.
