Gold prices in Pakistan have been rising steadily, with daily increases catching the attention of investors, households, and the jewelry industry. Many people search for “gold price in Pakistan today” or “why gold prices are increasing in Pakistan today” to understand what’s driving these changes.
This article explains the economic, political, and global reasons behind rising gold rates in Pakistan, using simple language and recent examples to help readers clearly understand the trend.
Overview: Gold Price Trend in Pakistan
In early 2026, gold prices in Pakistan reached record highs, with rates per tola and per 10 grams increasing frequently. This rise is closely linked to movements in the international gold market, changes in the USD to PKR exchange rate, and growing local demand for physical gold.
Because Pakistan imports most of its gold, any change in global prices or the value of the Pakistani rupee directly affects the local gold rate.
1. Depreciation of the Pakistani Rupee (PKR)
One of the biggest reasons for the rising gold rate in Pakistan today is the weakening value of the Pakistani rupee against the US dollar.
How It Works (Simple Explanation)
- Gold is traded globally in US dollars
- Pakistan buys gold in dollars
- If the rupee weakens, Pakistan has to pay more rupees for the same amount of gold
Impact
Even if international gold prices stay stable, a falling PKR can still push the tola gold price in Pakistan higher. This makes currency devaluation one of the most powerful drivers of daily price increases.
2. International Gold Market Trends
Global gold prices play a major role in determining local rates.
Key Global Drivers
- Central bank gold purchases
- Global inflation concerns
- Economic slowdown fears
- Stock market volatility
When investors around the world move their money into gold as a safe-haven asset, demand rises, and so does the international gold price. These increases are quickly reflected in Pakistan’s gold market.
3. Inflation and Cost of Living in Pakistan
Rising inflation reduces the purchasing power of money. As a result, many people turn to gold as a store of value.
Why Inflation Boosts Gold Demand
- Cash loses value over time
- Gold tends to hold long-term worth
- People use gold to protect savings
This behavior increases local gold demand, especially among middle-class families and long-term savers.
4. Interest Rates and Monetary Policy
Interest rates set by the State Bank of Pakistan influence how people invest their money.
Relationship Between Gold and Interest Rates
- High interest rates: People prefer savings accounts and fixed deposits
- Low or uncertain rates: People prefer physical assets like gold
When confidence in financial markets weakens, gold becomes a preferred option, increasing buying pressure in the Pakistan gold market.
5. Import Policies, Taxes, and Supply Costs
Pakistan imports most of its gold, making it sensitive to:
- Import duties and taxes
- Customs procedures
- Transportation and insurance costs
Any increase in these expenses raises the final price for consumers. Even small changes in policy or logistics can cause noticeable daily fluctuations in the gold price per tola in Pakistan.
6. Geopolitical Tensions and Global Uncertainty
Political instability, regional conflicts, and international tensions often push investors toward gold.
Why Gold Benefits During Global Crises
- Considered a stable asset
- Less affected by political systems
- Trusted during uncertain times
When global uncertainty rises, gold demand increases worldwide, pushing up both international and local prices.
7. Local Market Demand and Cultural Factors
Gold plays an important role in Pakistani culture, especially during:
- Wedding seasons
- Festivals and celebrations
- Family savings and gifts
During peak seasons, demand for gold jewelry rises sharply. This can lead to temporary price spikes in local markets and sarafa bazaars.
Recent Example of Price Movement
In January 2026, international gold prices reached historic highs. As a result, Pakistan’s gold rates also surged, with significant increases in both per tola gold price and 10-gram gold price across major cities such as Karachi, Lahore, and Islamabad.
This shows how closely the local gold market follows international trends and currency movements.
Impact of Rising Gold Prices in Pakistan
On Common People
- Jewelry becomes more expensive
- Wedding costs increase
- Families delay or reduce gold purchases
On Investors
- Existing gold holders benefit from higher value
- New investors face higher entry costs
- Short-term price volatility increases risk
On the Jewelry Industry
- Reduced customer demand
- Shift toward lighter or lower-carat designs
- Higher working capital requirements for shop owners
Frequently Asked Questions (FAQs)
Why is gold price increasing in Pakistan daily?
Gold prices rise due to international market trends, depreciation of the Pakistani rupee, inflation, and strong local demand.
How is gold price calculated in Pakistan?
It is based on global gold rates, the USD to PKR exchange rate, import costs, taxes, and local dealer margins.
Is gold a safe investment in Pakistan?
Gold is often considered a hedge against inflation and currency devaluation, but its price can fluctuate in the short term.
Conclusion
The daily rise in gold prices in Pakistan is driven by a combination of global market trends, rupee devaluation, inflation, import costs, and local demand patterns. While international gold rates set the foundation, domestic economic conditions and currency movements amplify the impact for Pakistani buyers.
