Gold and Silver Prices Rise Amid Geopolitical Tensions

Gold and silver prices climbed in both Pakistani and international markets on October 5, 2026. In Pakistan, the All Pakistan Sarafa Gems and Jewelers Association reported that 24-karat gold rose by Rs1,200 per tola to reach Rs437,536, while the price for 10 grams increased to Rs375,116. Silver prices also saw gains, with the price per tola rising by Rs66 to Rs6,588.

These domestic increases mirrored a rise in the international bullion market, where gold increased by $12 per ounce to reach $4,150, though some reports placed the price higher, between $4,181 and $4,200. Market volatility is being driven by geopolitical tensions, specifically a continuing war in Iran and attacks in the Strait of Hormuz, which have reinforced gold's status as a safe haven asset.

Global pricing is further influenced by U.S. economic indicators, including a 4.2 per cent unemployment rate and fluctuating Federal Reserve interest rate probabilities. While central banks in China and Poland have accelerated gold purchases, the World Gold Council reported a 62 per cent year-over-year increase in central bank buying for the second quarter. Looking ahead, financial institutions including Goldman Sachs, UBS, and HSBC predict long-term growth, with forecasts for 2027 ranging from $4,825 to $5,400 depending on inflation and monetary policy.