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The price of 24‑karat gold in Pakistan rose sharply on Thursday, reaching Rs 423,500 per tola, according to live rates published by Investify. The increase represents a gain of roughly Rs 13,900 per tola from the previous trading day, as reported by Business Recorder. The jump came after a period of relative stability and was the most significant single‑day rise observed in the last two weeks.
The rise in gold prices coincided with a decline in silver rates, which fell by about 1.2 % according to The Nation. Analysts attributed the divergent movement to a combination of higher global demand for gold as a safe‑haven asset and a temporary oversupply of silver in regional markets. Local jewelers noted that the price gap between gold and silver has widened, prompting some buyers to shift their focus toward gold.
Market participants said the surge reflects ongoing uncertainty in the domestic economy, including recent fluctuations in the exchange rate of the rupee and higher inflation readings. The State Bank of Pakistan has kept interest rates unchanged, but the central bank’s monetary stance continues to influence investor sentiment toward precious metals. Traders in Karachi’s Sarafa Bazaar reported heightened buying activity, especially among small investors seeking to preserve wealth.
Economists warned that if the rupee continues to depreciate, gold prices could climb further, putting additional pressure on households that already allocate a sizable portion of their income to food and energy. Conversely, a stabilization of the currency or a reduction in inflation could temper the upward trend. For now, the market remains watchful as the price level sits near a psychological barrier of Rs 425,000 per tola.
Why it matters
The increase in gold price directly affects Pakistani consumers, for whom gold is both a cultural asset and a common savings vehicle. Higher prices raise the cost of jewelry, a staple of weddings and festivals, and also increase the value of existing gold holdings, influencing household net worth calculations.
Investors also watch the metal as a hedge against inflation and currency risk. The recent jump may encourage more people to shift funds from bank deposits to gold, potentially reducing liquidity in the banking sector. At the same time, rising gold prices can increase the cost of imported raw material for the jewellery industry, which relies heavily on foreign suppliers.
For policymakers, the movement signals pressure on the cost of living, as gold is often used as a benchmark for price adjustments in various sectors. Any sustained rise could prompt the State Bank to reconsider its monetary policy to curb inflationary expectations.
Background
Gold has long been a preferred store of value in Pakistan, where cultural traditions encourage families to hold the metal as a form of inter‑generational wealth. Over the past decade, the price of a tola (approximately 11.66 grams) has risen from around Rs 150,000 in 2016 to over Rs 400,000 in early 2026, reflecting both global price trends and domestic economic factors.
Internationally, gold prices have been volatile due to geopolitical tensions, fluctuating US dollar strength, and changes in central bank policies. In the last six months, the global spot price has hovered around $1,800 per ounce, translating to the current local rates after accounting for import duties and taxes. Pakistan’s import duty on gold stands at 10 %, adding to the final retail price.
Domestic supply is largely met through imports, as local mining contributes a negligible share. The Sarafa markets in major cities such as Karachi, Lahore and Islamabad serve as the primary distribution hubs, where daily price updates are posted and traders adjust their inventories accordingly.
What happens next
Analysts expect the State Bank of Pakistan to monitor the gold market closely in its next policy review, scheduled for early December. If inflation remains above the target range, the central bank may raise interest rates, which could temper gold demand and stabilize prices.
Meanwhile, jewellery manufacturers are likely to keep a close eye on import duty adjustments and foreign exchange rates, as any relief could lower the cost of raw gold and ease pressure on retail prices.
Related headlines (third-party)
- Business Recorder: Gold price gains Rs13,900 per tola in Pakistan
- Investify: Gold Price in Pakistan Today: Rs 423,500/Tola (24K) | Live Sarafa Rate
- The Nation (Pakistan ): Gold prices remain unchanged, silver rates decline
Headlines are attributed for context. Verify on the publisher site.