Gold prices in Pakistan soared to a record Rs367,400 per tola, driven by a $36 increase in the international bullion market to $3,447 per ounce, as reported by the All Pakistan Sarafa Gems and Jewellers Association.
The international gold price climbed by $36 per ounce to $3,447, marking its highest level since July 17, 2025. In Pakistan, this translated to a Rs3,600 per tola increase, pushing the price to Rs367,400. Similarly, 10 grams of gold rose by Rs 3,172 to Rs 314,986, a new high. Meanwhile, silver prices increased by 1.7% to $39.77 per ounce, and platinum gained 0.3% to $1,362.86. Palladium remained flat at $1,102.08, heading for a monthly loss.
Gold’s appeal as a safe-haven asset grows amid global uncertainties. For instance, geopolitical tensions, including the Israel-Hamas conflict, and economic concerns, such as Pakistan’s 9.6% inflation rate in July 2025, as reported by the State Bank of Pakistan, drive demand. Furthermore, a weakening Pakistani rupee fuels local interest in gold as a hedge against financial instability. The global market’s 4.7% gain in August 2025 underscores strong investor confidence.
Impact on Pakistan’s Market
In Pakistan, gold has a significant influence on consumer and investment behaviour. Families purchase gold for weddings and as a means of savings, making changes in gold prices particularly impactful. The record high price of Rs367,400 per tola may lead to increased jewellery costs, but it also attracts investors looking for stability. Furthermore, digital platforms such as gold-backed exchange-traded funds (ETFs) and mobile trading apps have made gold more accessible to a wider audience.
While gold and silver saw gains, palladium’s stagnation highlights mixed market trends. Silver’s 1.7% rise to $39.77 per ounce and platinum’s 0.3% increase to $1,362.86 show positive sentiment for precious metals. However, palladium’s flat performance suggests weaker demand, per Reuters. In Pakistan, stable silver prices at Rs4,121 per tola provide an alternative investment option.
Pakistan’s economy faces challenges, including flood-related damages costing $3 billion in 2025. Gold’s price surge reflects cautious investor sentiment amid these pressures. Moreover, global factors such as US Federal Reserve rate decisions and Middle East tensions further enhance gold’s safe-haven status. The market anticipates continued volatility, with analysts predicting gold could hit $3,500 by year-end.
