Global gold prices saw a sudden drop on Thursday after rising prices for four days, falling by more than 1%, with expected impact on Pakistan’s local markets.

According to market analysts, the sharp decline came after a recent statement by Donald Trump, who signaled continuation of conflict with Iran and hinted at intensified attacks in the coming two to three weeks. His remarks created uncertainty among global investors, triggering a sell-off in gold.

As a result, gold prices dropped by around 1.3%, settling near $4694 per ounce in the international market. Experts believe that expectations of a quick end to the conflict faded after Trump’s statement, reducing gold’s appeal as a safe-haven asset.

Additionally, a rise of over 4% in global oil prices and the strengthening of the US dollar added further pressure on gold prices. A stronger dollar typically makes gold more expensive for investors holding other currencies, reducing demand.

Also Read: US media reports outline alleged Trump-era plans for operations in Iran

It is worth noting that March 2026 turned out to be the worst month for gold since 2008, with prices falling by nearly 11% overall.

In Pakistan, gold prices are also expected to decline following the global trend. Just a day earlier, gold had surged to around Rs494000 per tola due to international gains. However, with a drop of over $150 globally and a stronger dollar against the rupee, local prices may fall by Rs5000 to Rs7000 per tola.

Experts predict gold may now trade between Rs487000 and Rs489000 per tola in local markets.