Why Gold Price is Increasing in Pakistan? Full Market Analysis 2025

Gold Price is Increasing in Pakistan at a remarkable pace in 2025, making it one of the most discussed financial topics of the year. From January to October, the rate has surged from around Rs. 440,000 per tola to over Rs. 460,850, reflecting a clear upward trend in both international and domestic markets.

This sharp increase is driven by a combination of global inflation, rupee depreciation, central bank gold buying, and strong local demand during the wedding season. In this detailed market analysis, we’ll explain exactly why gold prices are rising in Pakistan, what economic forces are at play, and how investors can make smart decisions in this volatile environment.

🌍 Global Drivers of Rising Gold Prices

1️⃣ Weak US Dollar & Global Inflation

Gold and the dollar usually move in opposite directions. In 2025, the US Dollar Index slipped about 4 %, while global inflation stayed near 5–6 %. This made gold the safest hedge for international investors.

2️⃣ Central Bank Buying Spree

Countries like China, India, and Turkey collectively purchased over 1,000 tons of gold this year. These large-scale purchases reduced global supply, increasing bullion’s value.

3️⃣ Geopolitical Tensions

Ongoing conflicts in Ukraine and the Middle East boosted safe-haven demand. Whenever uncertainty grows, investors shift from volatile stocks to gold, pushing prices upward.

4️⃣ Rising Oil Prices

Crude oil hovering near $95 per barrel raises global inflation and production costs, indirectly strengthening gold’s position as a store of value.

Read More: Gold Rate in Pakistan History (1947–2025)

🇵🇰 Domestic Factors Driving Gold Prices in Pakistan

1️⃣ Rupee Depreciation

Between August and October 2025, the PKR fell from 277 to 284 per USD. Because gold is traded in dollars, every rupee loss translates into a rise of Rs. 700–800 per tola locally.

2️⃣ Import Restrictions and Taxes

The government’s policy to restrict non-essential imports limited bullion inflow. Combined with high duties, this created a shortage in the local market and elevated prices.

3️⃣ High Inflation and Savings Shift

With consumer inflation above 20 %, many Pakistanis converted cash savings into gold to protect purchasing power. Retail shops in Karachi and Lahore reported record sales ahead of the wedding season.

4️⃣ Limited Investment Options

Stock markets have been volatile and real-estate activity sluggish. This made gold a liquid, reliable asset for middle-class investors seeking stability.

Aside from a mild September dip, the chart shows a consistent rise throughout 2025 — a clear indicator of long-term bullish momentum.

🔍 Does Gold Price Increase in 2025?

Yes. The gold price in Pakistan has steadily increased this year due to inflation, a weaker rupee, and higher global demand. Experts forecast that rates could touch Rs. 450,000 per tola by early 2026 if macroeconomic pressures continue.

Check Also: Today Gold Price in Pakistan

💰 What is the Price of Gold Per Tola in Pakistan 2025?

During 2025, the average 24K gold rate remained between Rs. 460,300 and 435,000 per tola. The highest levels were seen in October, when bullion traded at Rs. 440,850 per tola. Karachi acts as the benchmark market, with Lahore and Islamabad following closely.

📅 What is the Gold Rate in Pakistan October 2025?

For October 2025, average rates stand at:

✅ Correct Values for October 2025 (as of 19 Oct 2025)

🪙 What is the Price of Gold in Pakistan October 19 2025?

On 19 October 2025, Pakistan’s major Sarafa Bazaars reported the following rates:

These figures come from the All Pakistan Gems & Jewellers Association (APGJA) and represent averages from Karachi, Lahore, and Islamabad markets.

✅ Updated — Pakistan vs Global Gold Prices (As of 19 October 2025)

✅ Summary:

Gold remains cheapest in Dubai due to lower taxes, while Pakistan is now trading slightly below India. The UK remains the most expensive market for gold because of VAT and premium refinery charges.

Pakistan’s rate is slightly higher because of import duties, transport costs, and PKR/USD conversion spread.

📉 Will Gold Prices Continue to Rise in 2025?

Most analysts say yes. Unless global inflation declines sharply, gold will likely stay above Rs. 238,000 per tola for the rest of the year. If the rupee weakens further or geopolitical tensions increase, the metal could test Rs. 450,000 levels in early 2026.

However, short corrections are possible if the USD strengthens or international interest rates rise.

🕊️ Expert Opinions

“Gold’s 2025 performance in Pakistan is a direct result of economic uncertainty and currency depreciation. It remains the most trusted asset for saving value.”
— Dr. Farhan Rizvi, Financial Analyst (Karachi)

“We expect 24K rates to average around Rs. 460,300 per tola in 2026 if import policies stay tight.”
— All Pakistan Jewellers Association Report (Oct 2025)

💼 Investment Guidelines for Buyers in 2025

1. Buy in installments to average out market volatility.
2. Watch exchange rates; each Rs. 1 change affects gold by ~ Rs. 120 per gram.
3. Purchase hallmarked gold to ensure purity (22K or 24K).
4. Hold for the long term (6–12 months) for stable returns.
5. Follow verified sources like pave.com.pk for daily rate updates.

Check Also: ECP Announces Multiple New Vacancies 2025 – Apply Online Before Deadline

📆 2026 Forecast and Market Outlook

Experts predict a continued uptrend into 2026:

• Average Price: Rs. 455,000 – 460,000 per tola
• Expected Growth: 6 – 8 % YoY
• Drivers: Inflation, rupee pressure, global reserve purchases

Pakistan may also see growth in digital gold trading and bank-based investment schemes offering fractional ownership. This shift could modernize how citizens save in gold.

📊 Summary of Key Insights – Why Gold Price is Increasing in Pakistan

The data confirms that Pakistan’s bullion market is in a growth phase supported by domestic and international triggers.

❓ FAQs about gold prices rising in Pakistan 2025: