A sharp decline in global gold prices after days of gains signals volatility, with local markets in Pakistan expected to follow suit.
Global gold prices witnessed a sharp pullback on Thursday, snapping a four-day rally as markets reacted to rising geopolitical tensions and economic pressures. Prices dropped by more than 1 percent, settling near $4,694 per ounce, triggering expectations of a similar downward trend in Pakistan’s local bullion markets.
Market analysts attribute the sudden decline to recent remarks by Donald Trump, who signaled the continuation of military actions against Iran over the coming weeks. His statement intensified uncertainty among global investors, dampening demand for gold as a safe-haven asset.
Additional pressure came from a stronger US dollar and a surge of over 4 percent in global oil prices, both of which typically weigh on gold valuations.
Historical data shows March 2026 as one of the weakest months for gold trading since the 2008 financial crisis, with prices falling approximately 11 percent overall.
In Pakistan, gold had reached a record Rs494,000 per tola just a day earlier. However, following a decline of over $150 in the international market, local prices are expected to drop by Rs5,000 to Rs7,000, bringing rates between Rs487,000 and Rs489,000 per tola.
Bullion market sources suggest that continued geopolitical instability and a firm dollar could keep gold prices volatile in the coming days.
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