Gold Prices Reach Historic High in Pakistan Amid Global Economic Uncertainty

Since the end of last year, Pakistan’s economy has shown signs of stability, with the rupee maintaining its value, food prices dropping, and inflation seeing a slight decrease. However, when it comes to gold, its prices have experienced some fluctuations. In August of the previous year, the price of gold per tola stood at 257,000 rupees, with daily price changes—sometimes increasing by 1,000 rupees one day and decreasing by 500 or 800 rupees the next.

Despite the fluctuations, over the past six months, the price of gold has surged to an all-time high, reaching 292,000 rupees per tola. To understand the reasons behind this increase and the outlook for the future, *V News* spoke to experts and professionals involved in the gold industry.

Abdullah Chand, a member of the All Pakistan Gold Association, explained to *V News* that the price of gold has now reached its highest level in history. He added that gold prices are expected to remain high throughout 2025, attributing the rise to several factors. One key reason is the increase in inflation worldwide. Additionally, major countries’ central banks have been buying large quantities of gold to stabilize their economies, which has boosted both the demand and price of gold.

Abdullah Chand also pointed out that the United States’ decision to increase import taxes on Mexico, Canada, and China has further influenced gold prices. He warned that gold prices could exceed 300,000 rupees per tola in the coming days. He further explained that if the price of gold in the global market rises to 3,000 dollars per ounce, the price of gold in Pakistan could reach 310,000 rupees per tola. He mentioned that this prediction had already been made last year, with expectations that the price could reach between 3,000 to 3,200 dollars per ounce, and the price has already reached 2,800 dollars per ounce.

He also discussed the potential for a trade war due to the increased import tariffs by the U.S., which could significantly impact gold prices. Currently, he sees no unexpected developments that would lead to a decrease in gold prices.

Economic expert Raja Kamran also shared his insights, noting that while gold prices are at a historic high in Pakistan, the U.S. stock market is facing a downturn. Kamran explained that gold is considered a safe investment, and whenever there is economic instability, stock markets decline, or a major crisis occurs, people tend to buy gold as a safeguard. This has contributed to both an increase in gold sales and prices.

Kamran further highlighted that gold is not just used in jewelry but also in industries such as electronics, including in computer, mobile phones, and other devices’ circuit boards. This industrial demand, coupled with increasing global purchases by investors, central banks, and industrialists, is driving up prices.

He also pointed out that central banks buy gold to build reserves, especially when there is volatility in currency markets. This trend is evident today as central banks worldwide continue to increase their gold reserves.

Regarding the possibility of gold prices decreasing, Raja Kamran stated that this is unlikely in the near future, as the U.S. administration under President Donald Trump seems to be shifting towards trade and tariff wars instead of physical conflicts. He believes that large nations will focus on increasing their gold reserves to protect their economies and currencies.