Gold Price Drops Near Rs 5.2 Lac per Tola in Pakistan as Downward Trend Continues
The ongoing bearish trend in the domestic bullion market intensified on Monday as the gold price drops near Rs 5.2 lac per tola, extending losses for the fourth consecutive session. According to data released by the All-Pakistan Gems and Jewelers Sarafa Association (APGJSA), the price of 24-karat gold per tola fell by Rs1,800, settling at Rs522,762 on March 16, 2026 .
This latest decline means gold has now lost approximately Rs14,000 per tola over the past four trading days, erasing gains from the previous rally and bringing prices dangerously close to the psychological barrier of Rs520,000 .
Today’s Gold Price in Pakistan March 16 2026
The gold price drops near Rs 5.2 lac per tola with the following official rates recorded on Monday :
Metal & Purity Unit Price PKR Change
- Gold 24K Per Tola Rs522,762 -Rs1,800
- Gold 24K 10 Grams Rs448,184 -Rs1,543
- Gold 22K 10 Grams Rs410,850 -Rs1,414
- Silver 24K Per Tola Rs8,441 -Rs100
- Silver 24K 10 Grams Rs7,236 -Rs86
Read Also Here: Gold Rate Suddenly Drops in Pakistan due to Gulf Tensions
Four-Day Losing Streak Explained
The current downturn represents one of the most sustained periods of decline in recent months. The gold price drops near Rs 5.2 lac after a series of significant daily losses :
- March 13 Friday: Gold dropped by Rs7,100 per tola to Rs533,262
- March 14 Saturday: Gold plunged by Rs8,700 per tola to Rs524,562
- March 15 Sunday: Markets closed (weekly holiday)
- March 16 Monday: Gold fell by another Rs1,800 to Rs522,762
The cumulative decline over the three trading days when markets were open stands at a staggering Rs17,600 per tola .
International Market Impact
The domestic decline mirrors significant movements in international bullion markets. Globally, the price of gold fell by $18 per ounce on Monday to reach $5,000 per ounce, including a premium of $20 . This follows Friday’s sharp decline when international gold had dropped by $87 to $5,018 per ounce .
Analysts attribute the international decline primarily to fading expectations of near-term U.S. interest rate cuts and profit-taking by investors after the precious metal reached all-time highs . The US dollar’s strength has also made greenback-priced gold more expensive for holders of other currencies, reducing global demand.
Geopolitical Paradox
Interestingly, the gold price drops near Rs 5.2 lac despite ongoing geopolitical tensions in the Middle East. The conflict involving US-Israeli strikes against Iran and the subsequent closure of the Strait of Hormuz would typically drive safe-haven demand for gold. However, market behavior has been counterintuitive.
Experts note that the recent dip in global gold prices is linked to a dramatic sell-off as investors began taking profits after the metal’s unprecedented rally . Additionally, margin calls in equity markets may be forcing investors to liquidate gold holdings to cover losses elsewhere.
The Pakistan Stock Exchange (PSX) also opened in the red on Monday as escalating tensions in the Middle East shook investor confidence, sending the benchmark KSE-100 Index sharply lower in early trading. Within minutes of market opening, the index tumbled close to 1,500 points, showing widespread panic selling across key sectors .
Silver Also Declines
Following the trend in gold, silver prices also registered significant declines in the domestic market. On Monday, 24-karat silver fell by Rs100 per tola to Rs8,441, while 10 grams declined by Rs86 to Rs7,236 . This extends the losing streak for the white metal, which had already dropped by Rs310 per tola on Saturday .
Expert Analysis on Future Direction
Market analysts suggest that while the gold price drops near Rs 5.2 lac, the long-term outlook remains positive. Experts note that the prevailing tensions between Iran and the US could make the situation otherwise if geopolitical risks escalate further .
Despite the short-term decline, experts remain bullish on gold in the long term, citing its enduring value as a safe-haven asset amid global economic instability. They note that gold’s intrinsic value, limited supply, and independence from government or central bank policies make it a reliable hedge against inflation, currency depreciation, and market volatility .
US President Donald Trump has pressed Iran to hold negotiations for a nuclear deal, while Tehran has threatened retaliation against the US, Israel, and allies, creating an uncertain geopolitical environment that could quickly reverse the current downward trend .
Investor Advice
Analysts say the continuous decline in gold and silver prices may influence local investment strategies, especially among small and medium investors in Pakistan . Investors are advised to monitor market trends closely and consult with experts before making gold purchases, as prices may continue to fluctuate in the coming days .
Geopolitical tensions, trade disputes, and market instability often push investors away from riskier assets, such as equities and speculative currencies, further boosting demand for bullion despite short-term corrections . Gold continues to serve not only as an ornamental asset but also as a financial safeguard, with its appeal strengthening amid persistent global economic and political uncertainty.
Analysis by Best Pak Mag:
The fact that the gold price drops near Rs 5.2 lac per tola after a four-day losing streak totaling Rs17,600 represents a significant correction in the domestic bullion market. This sustained decline demonstrates that even traditional safe-haven assets are not immune to broader market dynamics. The primary drivers appear to be technical—profit-taking after record highs and fading expectations of US interest rate cuts—rather than fundamental shifts in geopolitical risk . The paradox of gold falling during Middle East tensions highlights the complex nature of modern financial markets, where margin calls and dollar strength can override safe-haven demand. For Pakistani investors, the key question is whether this represents a buying opportunity or the start of a deeper correction. At Rs522,762, gold is still historically elevated compared to levels just months ago. The Rs520,000 level now becomes a critical support—a breach below this psychological barrier could trigger further selling, while a hold could attract bargain hunters. Silver’s parallel decline suggests broad-based selling rather than metal-specific factors. The coming days will reveal whether this is a healthy correction within a long-term bull market or a more significant trend reversal. Investors should watch international gold movements, US dollar strength, and Middle East headlines closely.
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