On Monday, March 2, 2026, gold prices in Pakistan experienced a significant surge as geopolitical tensions escalated in the Middle East. The spike came in response to Iran launching missile attacks targeting key Israeli locations, which sent shockwaves through international markets. The price of 24-karat gold per tola climbed dramatically by Rs13,300, reaching Rs563,862, while 10 grams of the same purity rose by Rs11,402 to settle at Rs483,420. These figures were released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), highlighting the immediate impact of the conflict on local bullion rates.
Alongside gold, silver prices also saw an upward trend, with the per tola rate increasing by Rs188 to Rs10,050. This rise in precious metals reflects a broader pattern observed worldwide, where investors turn to tangible assets during periods of uncertainty. Internationally, gold prices surged by $133, reaching an unprecedented $5,411 per ounce, underscoring the metal’s enduring appeal as a safe haven amid geopolitical unrest.
The catalyst for this market reaction was Iran’s Revolutionary Guards announcing missile strikes on strategic Israeli sites, including a government complex in Tel Aviv, military and security centers in Haifa, and an attack on East Jerusalem. These retaliatory actions followed the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei in a joint US-Israel operation. The Guards confirmed the use of Kheibar ballistic missiles in these strikes, marking a significant escalation in the ongoing conflict between Tehran and its adversaries.
Earlier that weekend, Israel and the United States had launched a series of unprecedented attacks against Iranian targets, further inflaming tensions across the region. This cycle of aggression has severely diminished prospects for diplomatic negotiations, deepening the divide between Iran and Western powers. The volatile situation has not only heightened security concerns but also triggered widespread economic repercussions, particularly in commodity markets.
Market analysts have weighed in on the developments, emphasizing that the outlook for gold remains robust amid the prevailing global economic uncertainty. They point out that gold’s intrinsic qualities—such as its scarcity, intrinsic value, and independence from government monetary policies—make it a preferred asset for hedging against inflation, currency devaluation, and economic instability. The current geopolitical turmoil has further reinforced gold’s status as a reliable store of value.
Furthermore, experts note that during periods marked by armed conflicts, trade tensions, and heightened market volatility, investors tend to retreat from riskier assets like stocks and speculative currencies. Instead, they gravitate towards precious metals, which traditionally serve as a financial refuge. This shift in investor behavior typically bolsters gold prices, even when broader economic conditions are challenging.
Historically, gold has been more than just a symbol of wealth and luxury; it has functioned as a critical financial safeguard during times of crisis. Its role as a safe-haven asset has grown stronger in recent years, with both institutional and retail investors increasingly seeking protection against the backdrop of persistent global political and economic uncertainties. The recent surge in Pakistan’s gold prices is a clear reflection of this enduring trust in gold’s value amid turbulent times.
