Gold prices continued their upward surge on Wednesday, reaching historic highs in both global and local markets, driven by expectations of further interest rate cuts by the US Federal Reserve, ongoing geopolitical tensions, and increased global demand for safe-haven assets.
In the international bullion market, the price of gold rose by $20 per ounce, reaching a new all-time high of $4,505 per ounce. This sharp increase had an immediate impact on Pakistan’s local bullion markets.
According to market sources, the price of 24-karat gold per tola in Pakistan jumped by Rs2,000, reaching a record Rs472,862, while the price of 10 grams of gold increased by Rs1,714 to Rs405,402, marking the highest levels in the country’s history.
Silver prices also followed the upward trend. The price of silver per tola increased by Rs500 to Rs7,705, while 10 grams of silver rose by Rs428 to Rs6,605, reflecting growing investor interest amid rising gold prices.
Gold Rally in 2025
During 2025, gold prices recorded an unprecedented surge in both global and domestic markets. Experts estimate that the price of gold per tola increased by nearly Rs500,000 within a single year, pushing the precious metal beyond the reach of not only the middle class but also affluent buyers.
Analysts warn that if Pakistan’s economic conditions fail to improve, the price of gold per tola could cross Rs500,000 in the near future.
Geopolitical instability, the rising influence of BRICS nations, and a shifting global economic order are cited as major factors behind the surge. Since the beginning of 2025, international gold prices have risen sharply, with experts noting heavy purchases by China and its banking sector, alongside a global weakening of the US dollar.
Impact on Pakistan’s Economy
Market experts say investors across the world are increasingly turning to gold as a secure investment, protecting their wealth amid economic uncertainty. In Pakistan, this trend has intensified as inflation and currency volatility persist.
However, the record-high prices have dealt a severe blow to Pakistan’s jewellery industry, with sales declining sharply due to reduced purchasing power.
Interestingly, silver prices surged by nearly 44 percent in 2025, as consumers and small investors shifted toward silver as a more affordable alternative to gold.
Financial analysts believe that unless regional stability improves and global monetary policies tighten, precious metal prices are likely to remain elevated in the coming months.
