Gold Prices Surge in Asia Amid US-Iran Tensions

Gold and silver prices experienced significant volatility across South Asia between May 12 and May 14, 2026, driven by geopolitical instability and currency fluctuations. On May 12, prices surged in Pakistan and New Delhi, with 24-karat gold in Pakistan reaching Rs 492,462 per tola. In India, gold rose to ₹1.56 lakh per 10 grams as the Indian rupee hit a record low of 95.63 against the US dollar.

Donald Trump fueled market volatility by stating the Iran ceasefire was on life support after Tehran rejected a US peace proposal. This tension coincided with reports of the United States and Iran exchanging fire during a month-long ceasefire, though both nations later claimed the situation had stabilized. In response to these pressures, the Government of India raised import tariffs on gold and silver from 6% to 15%, which caused local gold discounts to hit a record $207 per ounce in Mumbai as retail buyers retreated.

Pakistani markets saw a brief dip on May 13, with gold falling Rs 1,100 per tola, before rebounding on May 14 to Rs 492,362 per tola. International prices remained unstable, fluctuating between $4,660 and $4,701 per ounce. Analysts noted that investors continued to favor gold as a hedge against inflation and the potential for disruptions in the Strait of Hormuz, which have kept crude oil prices elevated.