In a staggering market reversal, the price of gold in Pakistan plummeted by Rs. 43,600 per tola on Monday, March 23, 2026. This historic drop—the largest single-day decline in the country’s history—mirrored a massive sell-off in international markets as geopolitical tensions in the Middle East showed signs of cooling.
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the new domestic rates are:
- 24K Gold (per tola): Rs. 447,762 (down from Rs. 491,362)
- 24K Gold (10 grams): Rs. 383,883 (down by Rs. 37,380)
- Silver (per tola): Rs. 6,884 (down by Rs. 800)
Global Market Dynamics: Why the Sudden Crash?
The domestic crash was triggered by a $436 drop in international spot gold, which brought global rates down to $4,250 per ounce. Market analysts attribute this “worst weekly crash in over 40 years” to several converging factors:
- De-escalation Signals: Prices, which had surged above $5,500 earlier in the month due to the US-Israel-Iran conflict, corrected sharply after President Trump signaled a five-day ceasefire and a willingness to de-escalate following threats to energy infrastructure.
- Dollar Strength & Yields: A stronger US dollar and rising bond yields have reduced the appeal of non-yielding assets like gold.
- Liquidity Squeeze: As oil prices fluctuated wildly, many institutional investors were forced to sell off liquid gold positions to meet margin calls and rebalance portfolios.
Impact on the Pakistani Market
The local market has been on a rollercoaster throughout March. Just weeks ago, gold was trading at record highs near Rs. 563,000 per tola. This latest correction brings the total cumulative reduction for the month to over Rs. 116,000 per tola.
While the sudden dip has stunned short-term investors, some analysts view this as a “healthy correction” after an overextended rally. However, physical demand remains cautious as buyers wait to see if the $4,200 international support level holds or if further drops are imminent.
