The domestic gold rate in Pakistan has climbed to a historic high, reflecting both international market volatility and local currency adjustments. On Friday, the price of 24-karat gold surged to Rs456,900 per tola, while 10 grams rose to Rs391,718, marking an unprecedented single-day jump of over Rs14,000 per tola.
This sharp surge has been attributed to a combination of factors — a global rally in gold prices, strong safe-haven demand, and the Pakistani rupee’s performance against the US dollar.
Record-Breaking Price Movement
According to data released by the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), international gold prices jumped $141 per ounce, reaching $4,358, which directly influenced domestic rates. In Pakistan, gold pricing depends heavily on global market shifts and the local exchange rate.
In comparison, just a week ago, the per tola rate was hovering near Rs440,000, showing an overall rise of nearly Rs17,000 within days — a record-breaking escalation even by 2025’s volatile standards.
Pakistan’s Growing Gold Reserves
Market analysts have noted that this rally is not limited to local markets. Mohammad Sohail, CEO of Topline Securities, revealed that Pakistan’s gold reserves have reached an estimated $9 billion, up from $6 billion at the beginning of 2025. This increase has pushed the country’s total reserves (including foreign exchange) close to $23 billion, nearing a decade-high benchmark.
Interestingly, gold now makes up almost two-thirds of Pakistan’s liquid reserves, compared to just one-third over the last ten years. This shift highlights the growing preference for gold as a financial hedge in the country’s reserve management strategy.
Global Factors Behind the Rally
The international price rally is being driven by multiple geopolitical and economic triggers. Analysts cite several key factors:
- Expectations of US Federal Reserve rate cuts, which make non-yielding assets like gold more attractive.
- Statements by former US President Donald Trump criticizing trade tariffs on China, causing further uncertainty in global markets.
- Ongoing conflicts in Ukraine and Gaza, which have strengthened gold’s safe-haven appeal.
- Central banks increasing their gold holdings to diversify reserves amid global instability.
These developments have collectively pushed international gold prices to all-time highs — and Pakistan, being an import-dependent market for bullion, is directly feeling the impact.
Discrepancy in Local Pricing
Despite official prices set by APSGJA, market rates in Karachi, Lahore, and Rawalpindi often differ significantly. Some jewellers quoted prices as high as Rs470,000 per tola earlier in the day before settling between Rs466,500 and Rs467,500 by evening.
Earlier in the week, the same tola was being sold between Rs450,000–Rs452,000, indicating massive intraday volatility. Traders often cite supply gaps, currency uncertainty, and speculative buying as reasons for these price swings.
Muhammad Haseen Qureishi, President of the All Karachi Jewellers and Manufacturers Association (AKJMA), has called on the government to establish a regulatory authority for daily gold rate transparency to prevent black-market pricing and restore public trust.
Silver Prices Hit Record Levels Too
The rally wasn’t limited to gold. Silver prices in Pakistan also touched historic highs. The price for 10 grams of silver reached Rs4,718, while one tola was quoted at Rs5,504, marking a rise of Rs167 and Rs141, respectively. Globally, silver prices rose $1.67 per ounce to $54.17.
However, traders reported that black-market silver trading was rampant, with unofficial rates ranging between Rs7,500 and Rs9,000 per tola. Small investors have reportedly turned to silver as an alternative hedge, given its lower entry cost and rising global demand.
Local Market Sentiment
Jewellery retailers in Karachi, Islamabad, and Rawalpindi report slow consumer buying, with most buyers holding off in anticipation of price corrections. However, small investors and speculators continue to view gold and silver as strong short-term stores of value amid rising inflation.
In cities like Islamabad, affluent buyers are purchasing small bars and coins for long-term security. Meanwhile, wedding season demand remains moderate, with jewellers noting a shift toward lighter, minimalist gold ornaments due to affordability concerns.
Pakistan’s Position in the Global Gold Ecosystem
Pakistan’s increasing reliance on gold mirrors a global trend of wealth preservation amid economic uncertainty. With gold prices touching all-time highs worldwide, developing economies like Pakistan are seeing strong investor interest, not just from individuals but also from institutional holders.
However, experts warn that while gold offers protection against inflation, excessive domestic speculation can destabilize local markets. They recommend gradual investment strategies and regulation to control pricing disparities among jewellers.
What This Means for the Average Pakistani
For the average citizen, rising gold rates have mixed implications. On one hand, it benefits those holding existing gold assets, as their wealth appreciates. On the other hand, it hurts jewellery buyers, importers, and businesses reliant on bullion for production.
Given that Pakistan imports nearly all its gold, further depreciation of the rupee or an uptick in global prices could make future rates even steeper.
Travel, Investment, and Local Economic Trends
With prices fluctuating daily, many buyers in Rawalpindi and Islamabad are traveling between cities to compare rates before purchasing. Those planning to buy jewellery or gold bars can save time and money using Al Farooq Rent A Car’s convenient rent a car in Islamabad and rent a car in Rawalpindi services. The company’s city-to-city car rental options also make travel easy for those comparing rates across gold markets.
Related FAQs
What is the gold rate in Pakistan today?
As of October 18, 2025, the gold price stands at Rs456,900 per tola and Rs391,718 per 10 grams, according to APSGJA.
Why are gold prices rising in Pakistan?
The increase is due to a $141 surge in global gold prices, geopolitical tensions, and fluctuations in the USD-PKR exchange rate.
What is the price of silver in Pakistan today?
Silver stands at Rs5,504 per tola and Rs4,718 per 10 grams.
Will gold prices continue to rise?
Analysts expect short-term volatility, but the long-term trend may remain bullish due to international uncertainty and central bank buying.
Can local traders charge more than APSGJA rates?
Yes, but that’s the issue — pricing discrepancies exist due to lack of enforcement, which industry associations are now urging the government to address.
