Karachi: Gold prices in Pakistan fell sharply for the second consecutive day on March 4, 2026, in line with a decline in the international bullion market, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
The price of 24-karat gold per tola decreased by Rs10,000 to Rs539,962 on Wednesday, compared to Rs549,962 in the previous trading session.
Similarly, the price of 10 grams of 24-karat gold declined by Rs8,573 to Rs462,930 from Rs471,503. The price of 10 grams of 22-karat gold fell by Rs7,859 to Rs424,367 from Rs432,226.
In contrast, silver prices recorded an increase. The rate of silver per tola rose by Rs100 to Rs9,004 from Rs8,904, while the price of 10 grams of silver increased by Rs86 to Rs7,719 from Rs7,633.
In the international market, gold prices fell by $100 to $5,172 per ounce from $5,272, while silver prices rose by $1 to $85.20 per ounce from $84.20, the association added.
Spot gold prices declined as a stronger US dollar offset safe-haven demand driven by the escalating US-Israeli air war against Iran, which has heightened geopolitical and economic uncertainty.
A stronger US currency typically makes dollar-denominated commodities such as gold more expensive for buyers using other currencies.
“The price decline is likely due to the market placing greater weight on the inflationary risks resulting from the war in the Middle East and therefore raising its interest rate expectations. This also explains why the US dollar continues to gain ground,” said Thu Lan Nguyen of Commerzbank.
Gold, a non-yielding asset, generally performs well in a low-interest-rate environment.
Despite the recent dip, many analysts remain bullish on gold. BMI, a unit of Fitch Solutions, said the metal could reach a record high above $5,600 per ounce this week unless there are signs of de-escalation in the conflict.
Market analysts noted that the overall outlook for gold remains positive, citing ongoing global economic uncertainty and sustained investor demand for safe-haven assets.
They said gold’s intrinsic value, limited supply, and relative independence from government or central bank policies make it a reliable hedge against inflation, currency depreciation, and broader economic instability.
Analysts added that geopolitical tensions — including armed conflicts, trade disputes, and heightened market volatility — often prompt investors to shift away from riskier assets such as equities and speculative currencies, increasing demand for bullion. This trend typically supports gold prices even during periods of economic stress.
Long regarded as a symbol of wealth and prosperity, gold continues to serve not only as an ornamental asset but also as a financial safeguard. Its safe-haven appeal has strengthened in recent years as both institutional and retail investors seek protection amid persistent global economic and political uncertainty.