KARACHI: Gold prices in Pakistan declined on Tuesday, May 5, 2026, tracking a downturn in the international bullion market amid shifting geopolitical conditions and fluctuations in global oil prices.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 24-karat gold per tola fell by Rs2,100 to Rs477,862, down from Rs479,962 on the previous trading day.
Similarly, the price of 10 grams of 24-karat gold dropped by Rs1,801 to Rs409,689 from Rs411,490, while 10 grams of 22-karat gold decreased by Rs1,651 to Rs375,561 from Rs377,212.
In the international market, gold prices declined by $21 to $4,555 per ounce, compared to $4,576.
Meanwhile, silver prices also witnessed a decline. The price per tola dropped by Rs65 to Rs7,849 from Rs7,914, while the rate for 10 grams fell by Rs55 to Rs6,729 from Rs6,784. Globally, silver prices decreased by $0.65 to $73.65 per ounce from $74.30.
Market analysts attributed the downward trend in bullion prices to evolving global geopolitical developments, particularly tensions and diplomatic activity involving the United States and Iran, as well as broader economic uncertainty.
Despite short-term fluctuations, analysts maintain a positive long-term outlook for gold, citing its enduring appeal as a safe-haven asset during periods of economic and geopolitical instability.
They noted that gold remains attractive to investors due to its intrinsic value, limited supply, and relative independence from government policies, making it an effective hedge against inflation, currency depreciation, and market volatility.
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Historically, periods of global uncertainty have driven investors toward bullion while reducing appetite for riskier assets such as equities and speculative currencies.
Gold continues to serve both as a traditional ornamental commodity and a key financial safe haven, with demand typically strengthening during times of global instability.