On June 2, 2025, gold prices in Pakistan surged significantly, driven by escalating tensions between Russia and Ukraine, which boosted global demand.
The price of 24-carat gold per tola increased by Rs5,900 to Rs353,100, and the price of 10 grams rose by Rs5,058 to Rs302,726, reflecting a $59 increase in the international market to $3,347 per ounce.
In 2025, gold prices in Pakistan experienced a significant spike, largely driven by a surge in the global bullion market. This increase was fueled by the ongoing Russia-Ukraine conflict and a rising demand for gold as investors sought safe-haven assets, according to Reuters. As a result, consumers in Pakistan’s jewellery markets felt the impact, with local traders reporting an uptick in purchases, as noted by Geo News. In contrast, silver prices remained stable, with one tola priced at Rs3,356 and 10 grams at Rs2,962.
The Russia-Ukraine conflict, intensified by Ukraine’s June 1 drone strikes on Russian airbases, triggered market volatility, per Bloomberg. Gold’s role as a hedge against geopolitical risks drove the 24-carat gold surge, with analysts predicting further rises if tensions persist.
Read: Gold Prices Drop to Rs347,900 per Tola, PSX KSE-100 Gains 111 Points
The Pakistan jewellery market is under pressure due to rising gold prices, which are impacting purchases during the wedding season. While the steady prices of silver provide some relief, gold’s importance in cultural and investment contexts heightens the effect of the price increase. Additionally, the government’s focus on achieving economic stability, with a growth target of 4.2% for 2025-26, highlights the challenges faced by the market.
The rise in gold prices in Pakistan in 2025 reflects global uncertainties affecting local economies and consumer behaviour. The ongoing Russia-Ukraine conflict has increased demand for gold, which is influencing markets worldwide. As Pakistan’s jewellery sector faces rising costs, it underscores gold’s lasting role as a financial haven during turbulent times.
