As 2026 approaches, major financial institutions and investment banks around the world continue to project a strong long-term outlook for gold prices. While some social media pages and informal finance platforms are circulating claims of an upcoming correction, market experts say the broader trend still points upward.
Analysts explain that global economic conditions, interest rate expectations, the strength of the US dollar, and ongoing geopolitical tensions remain key drivers behind fluctuations in gold and silver prices. Despite short-term volatility, the overall direction is expected to stay bullish.
A senior member of the Karachi Gold Association, Abdullah Chand, says both gold and silver are currently firmly in an upward cycle in local and international markets. He notes that there are no credible indicators suggesting a sustained decline in prices.
According to him, gold recently posted a nearly $100 breakout high at the start of the week in international trading and remained stable after gaining more than $88 during active sessions, signaling strong buyer interest. Silver has also shown notable strength, touching $76 globally after a sharp rise and later stabilizing with gains of around $2.5 to $3.
Chand points out that global geopolitical uncertainty remains elevated. While tensions ease in one region, new flashpoints emerge elsewhere. He highlighted recent strain between the United States and Venezuela, calling it particularly sensitive due to Venezuela’s vast oil reserves and the involvement of major global players, including China, Russia, Iran, and Saudi Arabia.
He warned that any military escalation or conflict could significantly impact the global economy and commodity markets. In such scenarios, investors typically move toward safe-haven assets like gold and silver.
He also noted that rising economic pressure in the US and a weakening dollar further support gold prices, while silver continues to benefit from industrial demand, emerging technologies, and the electronics sector.
Based on current global conditions, Chand believes that gold prices in Pakistan could approach Rs. 600,000 per tola by the end of the year, with silver also expected to rise gradually.
Meanwhile, Rawalpindi Sarafa Association member Muhammad Mujtaba says the start of 2026 could bring unusual volatility in gold prices. However, he agrees that the broader trend remains positive. According to him, shifting global dynamics and investor behavior suggest that gold still has the capacity to set new price levels, with limited chances of any long-term decline.
