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At least eight people were killed and more than 40 injured when thousands of protesters stormed the US Consulate General in Karachi on March 1, 2026, in violent demonstrations triggered by Iran’s official confirmation that Supreme Leader Ayatollah Ali Khamenei was killed in joint US-Israeli airstrikes two days earlier.

The assault on the heavily fortified diplomatic compound in Clifton began shortly after 2 p.m. local time when a large crowd, estimated at 15,000–20,000 by police, breached outer security barriers despite heavy deployment of Rangers and Sindh police. Demonstrators, many waving Iranian and Palestinian flags and chanting anti-American and anti-Israeli slogans, hurled petrol bombs, stones and fireworks at the perimeter wall while attempting to scale it.

Security forces responded with tear gas, rubber bullets and, according to eyewitness accounts and video footage verified by Reuters and Dawn, live ammunition after protesters set fire to vehicles and tried to force open the main gate. Karachi police spokesperson Atiq Shah confirmed eight deaths — seven protesters and one security guard — and 43 injuries, including 12 police officers and several journalists covering the rally. Hospital officials at Jinnah Postgraduate Medical Centre and Civil Hospital Karachi reported most casualties suffered gunshot wounds or severe burns.

The violence erupted hours after Iran’s state broadcaster IRIB aired a short statement from the office of the Supreme Leader acknowledging Khamenei’s death “as a martyr in defense of the Islamic Republic” during “Zionist-American aggression.” The announcement, read by a somber presenter, ended weeks of conflicting reports that began when US President Donald Trump claimed on February 28 that Khamenei had been killed in strikes on his Tehran residence. Iranian officials initially denied the claim, insisting he was “commanding the field,” but the IRIB broadcast included a pre-recorded video message from Khamenei dated February 25, widely interpreted as his final public statement.

The confirmation ignited outrage across the Muslim world. In Karachi — Pakistan’s largest city and commercial hub with a large Shia population — religious parties including Jamaat-e-Islami, Tehreek-e-Labbaik Pakistan and Majlis Wahdat-e-Muslimeen called for nationwide protests. Rally organizers had announced a “million-man march” to condemn the “martyrdom” of Khamenei and demand Pakistan sever ties with the United States.

By mid-afternoon, protesters had torched at least three vehicles near the consulate and damaged outer fencing. Police fired volleys of tear gas and used water cannons, but the crowd pressed forward, overwhelming initial lines. Video circulated on social media showed masked men attempting to climb the consulate wall while others chanted “Death to America” and “Death to Israel.” Consulate staff were evacuated to a secure location earlier in the day as a precautionary measure, a US Embassy spokesperson confirmed.

Sindh Chief Minister Syed Murad Ali Shah condemned the attack on the consulate as “unacceptable” and ordered a high-level inquiry. Federal Interior Minister Mohsin Naqvi said the government would not tolerate violence against diplomatic missions and promised “strict action” against those responsible. Pakistan’s Foreign Office summoned the US Chargé d’Affaires to lodge a formal protest over the strikes on Iran, while reiterating Islamabad’s call for de-escalation.

The US State Department issued a strong condemnation of the violence, describing the assault as “unacceptable” and urging Pakistani authorities to protect diplomatic personnel and property. “We hold the Government of Pakistan responsible for the safety of our facilities and personnel,” a spokesperson said. The consulate remained closed to the public, with non-essential staff advised to shelter in place.

The Karachi unrest was the most severe of several protests across Pakistan following Khamenei’s confirmed death. Demonstrations also erupted in Lahore, Multan, Quetta and Islamabad, though none reached the same intensity. In Tehran, tens of thousands gathered for Khamenei’s funeral procession, with Acting Supreme Leader Mohammad-Mokhber leading prayers and vowing “severe revenge.”

The US-Israel operation, dubbed “Operation Epic Fury,” targeted Iranian nuclear sites, missile bases and leadership compounds starting February 28. Trump described the strikes as necessary to eliminate threats, while Israeli Prime Minister Benjamin Netanyahu called them pre-emptive. Iran retaliated with missile barrages against Israel and US bases in the Gulf, killing one civilian in Abu Dhabi and injuring several others.

Pakistan’s government has walked a delicate line, condemning the strikes on Iran while maintaining security cooperation with the United States. Prime Minister Shehbaz Sharif spoke with Iranian officials March 1 to express condolences and reiterated Pakistan’s support for Iran’s sovereignty.

Security remained tight around other Western diplomatic missions in Karachi and Islamabad on March 2, with additional Rangers deployed. Authorities imposed Section 144 restrictions banning public gatherings in sensitive areas of Karachi for 48 hours.

The death toll and images of burning vehicles near the consulate have drawn international concern. The United Nations called for restraint, while human rights groups urged Pakistani authorities to investigate the use of lethal force.

As Karachi remained tense and cleanup crews worked through the night, the incident underscored the rapid spillover of the Iran crisis into South Asia, testing Pakistan’s balancing act between domestic religious sentiment and international alliances.

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Stern claimed to have been very well connected in China. In one 2011 email he apparently claims to be friends with Louis Cheung, the president of Ping An, one of the world’s largest insurance companies, and Alvin Jiang, the grandson of the former president Jiang Zemin. Stern claims to have met Levin Zhu, the son of the former premier Zhu Rongji.

Gold prices climbed sharply in early March trading, with spot gold reaching around $5,278 per ounce on March 1, 2026, up more than 1.8% from the previous close, according to data from major market trackers like Kitco and JM Bullion.

The rally extended gains from late February, when the metal rebounded above $5,200 after a brief pullback, capping a volatile but ultimately positive month. Analysts attribute the move to a confluence of factors: persistent global instability, expectations around U.S. tariff policies under the current administration, and steady institutional buying that has kept the floor elevated.

As of midday March 1 in New York, spot gold was bid at approximately $5,278.20, with asks near $5,280.20, reflecting a daily gain of about $94 per ounce or 1.82%. Other sources showed slight variations, with prices ranging from $5,277 to $5,294 depending on the platform and exact timing, underscoring the metal’s high volatility in the current environment.

The advance comes after gold hit an all-time high of around $5,608 per ounce in January 2026, before a correction in February trimmed gains modestly. Despite the dip, the yellow metal remains up more than 80% year-over-year in many comparisons, highlighting its role as a hedge in turbulent times.

Market participants point to several key drivers behind the latest uptick. Geopolitical risks, including escalating tensions in the Middle East—particularly involving U.S.-Iran dynamics—have bolstered demand for assets perceived as safe stores of value. Reports of potential conflict escalation have kept investors on edge, with gold traditionally benefiting from such uncertainty.

U.S. trade policy has also played a significant role. Proposed global tariffs under President Trump’s administration, aimed at protecting domestic industries, have raised fears of retaliatory measures from trading partners, potentially slowing global growth and fueling inflation. In this scenario, gold serves as an inflation hedge and alternative to weakening fiat currencies.

A softer U.S. dollar has further supported the rally. As the dollar index eased, making dollar-denominated gold more attractive to international buyers, inflows accelerated. Lower real yields on U.S. Treasuries—adjusted for inflation—have diminished the opportunity cost of holding non-yielding bullion.

Central bank purchases remain a structural tailwind. Institutions worldwide added hundreds of tonnes to reserves in 2025, with estimates suggesting similar or slightly lower but still robust buying in 2026—around 800 tonnes annually, equivalent to roughly a quarter of global mine supply. This consistent demand has rewritten the market’s baseline, limiting downside even during periodic corrections.

Retail and institutional investor interest has also surged. Sentiment surveys show high optimism for gold in 2026, with many viewing it as a diversification tool amid equity market jitters and bond volatility.

Analysts from major firms have updated forecasts accordingly. J.P. Morgan raised its long-term outlook, targeting prices toward $5,000 by late 2026 and potentially $6,000 longer-term, driven by ongoing diversification trends away from traditional reserve assets. Other projections, including from UBS and Wells Fargo, see averages in the $4,300–$6,300 range for 2026 quarters, reflecting bullish consensus.

However, not all views are uniformly optimistic. Some warn of potential pullbacks if economic growth accelerates unexpectedly or if geopolitical de-escalation occurs. A stronger dollar or faster-than-expected Federal Reserve rate hikes could pressure prices downward. Trading Economics models suggest gold could reach $5,315 by quarter-end and $5,724 within 12 months, but emphasize risks from policy surprises.

Technically, gold has shown resilience, rebounding from support near $5,000–$5,100 and challenging resistance toward $5,300. Momentum indicators remain bullish, with many traders eyeing $5,300 as the next psychological barrier.

The broader precious metals complex has followed suit, with silver outperforming in recent sessions, compressing the gold-silver ratio and signaling potential leadership shifts in the bull market phase.

For everyday investors, the high prices translate to elevated costs for physical gold products like coins and bars, though many see the current levels as validation of gold’s long-term upward trajectory. Jewelry demand in key markets like India and China has remained steady despite elevated prices, supported by cultural factors.

As March begins, market watchers will monitor upcoming economic data, including U.S. inflation reports and Fed commentary, alongside any developments in trade negotiations and international conflicts. With multiple catalysts aligned, gold appears poised for continued strength in the near term, though volatility is expected to persist.

The metal’s performance in early 2026 underscores its enduring appeal as a hedge against uncertainty in an era of shifting global dynamics. Whether the rally sustains or faces headwinds, gold remains a focal point for investors navigating the complex landscape.