Gold and silver prices as of August 4, 2025
Gold Prices in Pakistan: Fluctuating Amidst Global and Domestic Factors
The rate of gold in Pakistan has been experiencing fluctuations on August 4, 2025, with the price for 24 carat gold standing at Rs359,500 per tola and Rs308,213 for 10 grams. Meanwhile, the price for 24 carat silver is Rs3,953 per tola and Rs3,389 for 10 grams.
Gold prices in the country are influenced by a variety of factors, both global and domestic. The gold market in Pakistan is closely tied to international gold prices, which are quoted per ounce. Any increase or decrease in the global market immediately affects local rates. For instance, a recent $26 rise in the global market led to an increase in Pakistan's gold price.
The Pakistani Rupee's valuation also plays a significant role. Given the country's relatively weak and volatile currency, depreciation of the PKR against the US Dollar makes gold more expensive domestically since gold is traded internationally in USD.
High inflation in Pakistan raises gold prices as gold is seen as a safe-haven investment during economic crises. Central bank policies and gold reserves can also affect supply, influencing prices. Increases in gold imports or changes in the central bank's gold holdings can impact the market dynamics.
Interest rates are another factor to consider. Gold, being a yield-less asset, tends to rise when interest rates are low, as the opportunity cost decreases. Conversely, higher interest rates can suppress gold prices.
Geopolitical factors and market sentiment can also impact gold prices. Events causing geopolitical instability or fears of recession tend to increase demand for gold, pushing prices up due to its safe-haven status.
Domestic demand dynamics, such as demand for gold jewelry, coins, and investment, also affect pricing locally, alongside international trends. When demand increases, investors rush to buy gold, thereby affecting its price in the market.
Gold, like silver, closely follows the trajectory of the US dollar and international rates of the commodity. The prices for both metals are fixed by respective Sarafa associations in their cities.
Predicting future gold rates in Pakistan can be challenging due to the volatility of the bullion market. The prices have been fluctuating since last year, largely due to the devaluation of the rupee and economic and political uncertainty. When the rupee is under pressure, investors take refuge in gold as a safe-haven metal.
In recent news, on Monday, the price of 1 tola of gold increased by Rs500, and the price of 10 grams of gold increased by Rs429. Gold is widely used in Pakistan for making jewelry and is often considered an inflation hedge, gaining support in economically uncertain times such as in Pakistan.
- The fluctuations in gold prices in Pakistan on August 4, 2025, are influenced by both global and domestic factors, with silver prices also following the same trend.
- The price of 24 carat gold in Pakistan is significantly affected by the depreciation of the Pakistani Rupee against the US Dollar, making gold more expensive domestically.
- High inflation in Pakistan raises gold prices, making it a popular safe-haven investment during economic crises.
- Interest rates play a crucial role in gold prices, with gold, being a yield-less asset, tending to rise when interest rates are low.
- Geopolitical factors and market sentiment impact gold prices, as events causing geopolitical instability or fears of recession tend to increase demand for gold.
- Domestic demand dynamics and international trends, such as demand for gold jewelry, coins, and investment, also affect gold prices locally, making it a valuable asset in economically uncertain times like Pakistan.
