KARACHI: Gold prices in Pakistan took a sharp downturn on Tuesday, May 5, 2026, mirroring a slide in the international bullion market amid shifting geopolitical dynamics 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 the previous trading day. Similarly, 10 grams of 24-karat gold dropped by Rs1,801 to Rs409,689, while 10 grams of 22-karat gold decreased by Rs1,651 to Rs375,561.
Internationally, gold prices fell by $21 to $4,555 per ounce, compared to $4,576. Silver also witnessed a decline, with the per tola price dropping by Rs65 to Rs7,849 and 10 grams falling by Rs55 to Rs6,729. Globally, silver prices decreased by $0.65 to $73.65 per ounce. Market analysts attributed the downturn to evolving geopolitical tensions, particularly diplomatic activity between the United States and Iran, alongside broader economic uncertainty. Reuters reported similar declines in global precious metals markets, citing safe-haven unwinding amid tentative diplomatic progress.
Despite the short-term slump, analysts maintain a positive long-term outlook for gold, emphasizing its enduring appeal as a safe-haven asset. “Gold remains attractive to investors due to its intrinsic value, limited supply, and independence from government policies,” said a senior analyst. It serves as an effective hedge against inflation, currency depreciation, and market volatility. Historically, periods of global uncertainty have driven investors toward bullion, reducing appetite for riskier assets like equities. BBC notes that gold demand typically strengthens during geopolitical instability.
In Pakistan, gold is not only a traditional ornamental commodity but also a key financial safe haven. The recent decline offers an entry point for investors, though volatility is expected to persist. The All Pakistan Sarafa Gems and Jewellers Association continues to monitor daily rates closely. For more on global economic trends affecting precious metals, visit Al Jazeera’s economy section.
Source: ARY News