Gold prices in Pakistan have fallen sharply in recent weeks, dropping to Rs428,208 for 10 grams and Rs499,462 per tola, following a $243 decrease to $4,767 per ounce on international markets. This decline coincides with the escalating conflict in the Middle East.
Shifting Market Dynamics
On February 28th, following an attack by the US and Israel on Iran, 10 grams of gold cost Rs472,018 and one tola was priced at Rs550,562, based on a global price of $5,278 per ounce. Prior to this, Pakistan saw its highest-ever gold rates on January 29, 2026, with 10 grams at Rs491,135 and one tola at Rs572,862, as the global price reached $5,505 per ounce.
Qasim Shikarpuri, president of the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), noted a historical trend: “History shows that the precious metal has often lost its luster when intense conflicts escalate into full-scale wars among countries.”
Dubai’s Role in the Shift
The decline in gold prices is also linked to changes in Dubai, previously a major gold market. Investor activity in Dubai has decreased, with foreigners leaving the country, leading to a willingness among investors to sell gold at up to $40 below market price to liquidate assets.
Previously, gold was smuggled into Pakistan due to higher prices in Dubai, but this trend has reversed as Dubai’s market weakens. Some investors in Pakistan are now cautiously purchasing gold, anticipating a potential rebound once the Middle East conflict subsides.
Despite the recent drop, domestic gold prices remain relatively high for jewelry buyers compared to January levels.
Frequently Asked Questions
What caused the recent drop in gold prices in Pakistan?
The drop in gold prices is linked to a decline in international prices, coinciding with the escalating conflict in the Middle East and changes in investor behavior in Dubai.
How have events in Dubai impacted gold prices?
Investor activity in Dubai has decreased, with foreigners leaving the country and selling gold to secure their safety, leading to lower prices.
Is this a good time to buy gold in Pakistan?
Some investors in Pakistan are taking a risk and buying gold at lower prices, hoping for a rebound after the Middle East conflict subsides, but prices remain high compared to January levels.
As the situation in the Middle East continues to evolve, will gold prices stabilize, or are further fluctuations likely?
