In a historic single-day correction, gold prices in Pakistan witnessed a massive decline on Monday, March 23, 2026, as the market slumped below the Rs450,000 threshold. The crash followed a sharp cooling of international bullion rates after U.S. President Donald Trump signaled a potential pause in military escalations against Iranian energy infrastructure.
Market Breakdown: Record Slump
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the local market saw one of the steepest daily drops in history:
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24K Gold (Per Tola): Fell by Rs43,600, settling at Rs447,762.
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24K Gold (10 Grams): Decreased by Rs37,380, closing at Rs383,883.
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Silver (Per Tola): Dropped by Rs800 to settle at Rs6,884.
The "Trump Factor" and Global Correction
The primary catalyst for the sell-off was a sudden shift in geopolitical sentiment. Global spot gold which had been trading at record highs plunged as much as 8% to a session low of $4,097.99 per ounce before a minor recovery.
Market panic subsided after President Trump announced a five-day postponement of planned strikes on Iranian power plants, citing "productive conversations" aimed at de-escalation. This development triggered a synchronized decline across safe-haven assets:
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Reduced Geopolitical Risk: The temporary halt to potential strikes on energy facilities lowered the immediate "war premium" on gold.
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Oil Price Slide: As energy supply fears eased, crude oil prices softened, further reducing the inflationary appeal of precious metals.
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Liquidation: Analysts noted that gold was coming off its worst weekly performance since 1983, as investors liquidated positions to cover margins in other volatile sectors.
"The $4,000 level remains the critical floor for global gold. While the diplomatic pause has provided temporary relief, the market remains highly sensitive to any breakdown in talks," noted Adnan Agar, Director at Interactive Commodities.
Outlook for Local Investors
Local experts suggest that while the current correction offers a breather for buyers, the market remains in a state of flux. With the petroleum levy recently increased to Rs300 per litre and ongoing currency adjustments, the broader economic landscape continues to support gold’s long-term value, even as short-term volatility remains extreme.
