Gold Price in Pakistan: A New All-Time High

2025-10-07

Gold prices have surged to record levels globally and in Pakistan, signaling a renewed wave of safe-haven demand.

The precious metal’s price per ounce rose to a new global peak of $3,940, while in Pakistan, the rate per tola reached Rs415,278 — the highest in the nation’s history.

This milestone reflects not just global uncertainty but also local economic pressures and a shift toward hard assets. The combination of geopolitical risks, central bank gold buying, and speculation over interest rate cuts has once again made gold the asset of choice for investors seeking stability.

In a country like Pakistan, where currency depreciation and inflation erode purchasing power, the rally underscores the metal’s long-standing role as a hedge against financial volatility.

Key Takeaways

Global gold prices climbed to $3,940 per ounce, setting a new record.
In Pakistan, gold reached Rs415,278 per tola and Rs356,033 per 10 grams, both at all-time highs.
Silver also hit a 14-year high at $48.53 per ounce, showing broader precious metals strength.

Global Gold Rally and Its Drivers

Spot gold rose sharply by $54 in a single session, continuing a months-long uptrend driven by global rate-cut bets and macroeconomic uncertainty.

The surge followed renewed speculation that major central banks, including the U.S. Federal Reserve, will ease monetary policy to counter slowing growth.

At the same time, geopolitical tensions in the Middle East and Europe have revived safe-haven demand. Investors have flocked to gold-backed exchange-traded funds (ETFs) and physical bullion, causing a shortage in wholesale markets.

The rally also reflects the weakening U.S. dollar and a slide in Treasury yields, which historically have an inverse relationship with gold prices.

Pakistan’s Domestic Gold Market

The price of gold in Pakistan mirrors the global trend but is further magnified by currency depreciation and import costs. On Monday, the local market reported a rise of Rs5,400 per tola, pushing prices to Rs415,278 — a record-breaking high.

Meanwhile, the price of 10 grams of gold jumped by Rs4,629 to Rs356,033. These figures mark the steepest single-day rise seen in months, largely driven by higher international rates and local supply constraints.

Gold dealers report increased buying from investors and households seeking protection from inflation and rupee volatility. However, jewellery demand among consumers has remained subdued due to affordability concerns.

Comparison with Silver and Other Metals

The rally isn’t limited to gold. Spot silver climbed to $48.53 per ounce, its highest level in over 14 years, while platinum rose 0.6 percent to $1,615.45 and palladium gained 1.6 percent to $1,280.75.

The synchronized rise across precious metals indicates a global shift toward tangible stores of value as markets brace for lower real yields and potential recessionary trends.

Economic Context Behind the Surge

Gold’s record-breaking rally comes at a time of broader market uncertainty. The global economy is experiencing slower growth, and central banks are signaling possible rate cuts. Historically, lower interest rates boost gold’s appeal since it becomes cheaper to hold non-yielding assets.

For Pakistan, inflation remains elevated, and the rupee has shown limited stability despite recent improvements. These factors have made gold one of the most attractive investment assets in the country’s financial landscape.

According to local analysts, the latest surge is a reflection of both international fundamentals and domestic economic sentiment, where investors turn to gold as a hedge against prolonged uncertainty.

How the Rupee and Global Rates Affect Local Gold Prices

Gold prices in Pakistan are closely tied to movements in the rupee and the U.S. dollar. A weaker rupee makes imported gold more expensive, pushing up local prices even when international rates remain steady.

With the rupee trading under pressure and import restrictions still weighing on supply chains, traders anticipate continued volatility in domestic gold prices. Any shift in the exchange rate or global monetary policy will likely influence future price trends.

What It Means for Investors

For long-term investors, gold remains a defensive asset. Those who entered the market earlier in 2024 have seen significant returns, while new buyers must weigh the risk of entering at elevated levels.

Experts suggest that while short-term corrections are possible, the broader trend remains bullish as long as real interest rates stay low and geopolitical tensions persist.

Investment-grade gold — bars and coins — continues to attract demand from retail investors, while jewellers are reporting lower turnover due to affordability challenges.

Outlook for the Coming Months

Analysts expect that gold could maintain its upward momentum if global rate cuts materialize in late 2025 or early 2026. The next key resistance is around $4,000 per ounce, which could trigger profit-taking but also attract fresh momentum traders.

In Pakistan, much depends on the rupee’s stability and import policy adjustments. If the currency weakens further, domestic prices could climb even higher regardless of global moderation.

Market participants will also monitor inflation data, U.S. employment reports, and central bank statements to gauge whether the rally has room to continue.

Final Thoughts

Gold’s climb to new all-time highs marks another reminder of its enduring appeal during economic and political uncertainty. In both global and domestic markets, investors continue to view it as a safe-haven asset capable of preserving value when fiat currencies and equities show weakness.

For Pakistan, gold’s rise underscores ongoing inflationary pressure and currency risk but also reflects growing investor confidence in tangible assets. Whether prices stabilize or continue climbing, one thing is certain — gold has reclaimed its position as the world’s most trusted store of wealth.

FAQs

What is the current gold price in Pakistan?

As of October 6, 2025, gold is priced at Rs415,278 per tola and Rs356,033 per 10 grams — the highest ever recorded.

Why is gold reaching record highs globally?

A combination of lower bond yields, expectations of rate cuts, geopolitical tensions, and rising safe-haven demand have pushed prices to all-time highs.

How does the rupee affect local gold prices?

A weaker rupee increases import costs, leading to higher domestic gold prices even if global rates remain stable.

Is now a good time to invest in gold?

Gold remains attractive for long-term holders seeking protection against inflation and market volatility, though short-term investors should expect fluctuations.