Gold Prices Soar Globally Amid US-Israel Strikes on Iran, Record Volatility Hits Pakistan Market

Following airstrikes by the United States and Israel on Iran, global gold prices broke previous records on **February 28**, surpassing the psychological threshold of **$5,400 per ounce**.

When markets opened on **March 2**, spot gold prices jumped an additional 2–3%, with some futures trades touching **$5,500 per ounce**. Analysts report significant surges in Asian markets as well. The rising geopolitical tensions prompted investors to withdraw funds from stocks and other assets, shifting capital into gold as a safe-haven investment.

Disruptions in airspace over Tehran and other parts of the Middle East, along with tensions in the Arabian Sea, affected the physical movement of gold. In Dubai, a major hub for gold trading, shipment delays raised concerns about local shortages and further price increases. Experts caution investors to remain careful amid extreme market volatility.

Traders predict that if the conflict escalates with further Iranian retaliatory actions, gold could reach **$6,000–$6,300 per ounce** by the end of 2026.

In Pakistan, gold prices experienced a sharp correction after hitting record highs earlier in the year. A **tola** of gold dropped by **PKR 13,900**, while 10 grams fell by **PKR 11,917**. Earlier in 2026, gold had surged to **PKR 570,000 per tola**, trading at **$5,580 per ounce** globally, before a downturn saw prices fall to **PKR 504,500 per tola**, reflecting a global decline of approximately $800 per ounce.

The extreme price swings severely affected local jewelers and manufacturers. Reduced sales and market uncertainty disrupted businesses, leading to quieter markets and a slowdown in trade activity.