Amid global political tensions and economic uncertainty, gold has once again become the focus of investors. After touching historic highs, gold prices in Pakistan are now stabilizing at a certain level, which has raised several questions for prospective investors.
According to economists, there are three main reasons why gold is considered a safe investment in 2026. The recent conflict between Iran and Israel and the ongoing debate on the 15-point peace plan presented by the United States have created uncertainty in the global market. In such situations, investors consider it safer to invest their money in gold rather than currencies.
Central banks around the world, including China and India, are increasing the proportion of gold in their reserves, which is an indication that the demand for gold will remain on a long-term basis.
In a country like Pakistan, where the inflation rate is high, gold proves to be an excellent hedge against the falling value of the rupee. Increase in interest rates: If the US Federal Reserve increases interest rates further, the price of gold in the global market may come under pressure.
If a peace deal is reached in the Middle East, a temporary correction of 20 to 30 percent is expected in gold prices.
Financial analysts say that gold is the best asset for “long-term” (3 to 5 years) rather than “short-term” profits. They suggest that investors keep 10 to 15 percent of their total portfolio in gold to protect their capital in the event of an economic crisis.
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