KARACHI: On Thursday, March 5, 2026, gold prices in Pakistan experienced a notable decline, reflecting movements in the global bullion market. The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) confirmed that the price of 24-karat gold per tola fell by Rs2,800, closing at Rs537,162. This drop marks a significant adjustment for local buyers and sellers, influenced largely by international economic factors.
Alongside this, the cost of 10 grams of 24-karat gold also decreased by Rs2,401, settling at Rs460,529. Silver prices were not immune to the downward trend either, with the rate per tola slipping by Rs194 to reach Rs8,810. These shifts in precious metal prices come at a time when global markets are grappling with heightened uncertainty and currency fluctuations.
Internationally, gold prices retreated by $28, settling at $5,144 per ounce. This decline was driven primarily by a strengthening US dollar, which tends to make dollar-denominated commodities like gold more expensive for buyers using other currencies. The stronger dollar effectively dampened the safe-haven demand that had been buoyed by escalating US-Israeli air strikes against Iran, a conflict that has increased geopolitical and economic tensions worldwide.
Despite the recent dip in prices, market experts remain cautiously optimistic about gold’s long-term prospects. They emphasize that ongoing global economic uncertainties continue to fuel investor interest in gold as a secure asset. The metal’s intrinsic value, coupled with its limited availability and relative insulation from direct government or central bank interventions, reinforces its role as a reliable hedge against inflation, currency devaluation, and broader financial instability.
Furthermore, analysts highlight that geopolitical unrest—including armed conflicts, trade tensions, and volatile market conditions—often triggers a shift among investors away from higher-risk assets such as equities and speculative currencies. This migration typically increases demand for gold, supporting its price even during turbulent economic periods. Gold’s enduring reputation as a symbol of wealth and financial security remains intact, serving not only ornamental purposes but also functioning as a critical safeguard for both institutional and retail investors.
In recent years, the appeal of gold as a safe haven has only grown stronger, as global political and economic uncertainties persist. Investors continue to turn to bullion to protect their portfolios against unpredictable market swings, inflationary pressures, and currency fluctuations. This dynamic underscores gold’s unique position in the financial landscape, balancing its traditional cultural significance with its modern role as a strategic investment asset.
