Karachi witnessed a notable decrease in gold prices on Thursday, March 12, 2026, as the local bullion market reacted to a broader downward movement in international gold rates. The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) confirmed that the price of 24-karat gold per tola dropped by Rs2,900, closing at Rs540,362 compared to Rs543,262 recorded on the previous trading day. This decline reflects the sensitivity of Pakistan’s gold market to global price shifts, which often influence domestic trading dynamics.
Alongside the tola measurement, the price of 10 grams of 24-karat gold also experienced a significant fall, decreasing by Rs2,486 to settle at Rs463,273, down from Rs465,759. This parallel drop in both common gold weight units highlights a consistent trend across different market segments. Silver prices were not immune to this downward pressure either, with rates falling by Rs179 to close at Rs9,175 per tola, indicating a broader contraction in precious metal values within the country.
On the international front, gold prices declined by $29 per ounce, reaching $5,176, a movement closely linked to rising oil prices and escalating geopolitical tensions in the Middle East. The recent surge in oil costs has been driven by intensified airstrikes conducted by the United States and Israel targeting Iran, which has injected a heightened level of uncertainty into global markets. Such geopolitical unrest often triggers volatility in commodity prices, including precious metals, as investors reassess risk and safe-haven assets.
Despite the immediate price drop, market analysts remain optimistic about gold’s long-term prospects. They emphasize that gold continues to be a preferred asset during times of global economic instability due to its intrinsic qualities. Unlike fiat currencies, gold’s supply is limited and it is not directly influenced by government or central bank policies, making it a dependable hedge against inflation, currency devaluation, and broader financial market turbulence. This enduring appeal ensures that gold remains a cornerstone for investors seeking to protect their wealth amid uncertain economic conditions.
Furthermore, experts point out that geopolitical conflicts, ongoing trade disputes, and fluctuating market confidence often lead investors to reduce exposure to riskier assets such as stocks and speculative currencies. This shift typically results in increased demand for bullion, reinforcing gold’s status as a safe-haven investment. Historically regarded not only as a symbol of wealth and cultural significance but also as a financial safeguard, gold’s dual role continues to strengthen in the face of persistent global economic and political challenges.
In summary, while the short-term decline in gold and silver prices in Pakistan reflects immediate reactions to international market pressures and geopolitical developments, the fundamental factors supporting gold’s value remain robust. Investors and traders alike are advised to consider these dynamics carefully as they navigate the evolving landscape of precious metal investments.
