The gold price in Pakistan has witnessed a sharp increase, with the rate for 24-karat gold rising by Rs2,200 per tola on Saturday, 24 May 2025. This latest adjustment, issued by the All Pakistan Sarafa Gems and Jewellers Association, brings the new market rate to Rs456,536 per tola.

Understanding the gold price in Pakistan

For the average Pakistani, gold is more than just a luxury; it is a traditional store of value and a primary hedge against inflation. When the price of gold rises by thousands of rupees in a single day, it directly impacts households planning for weddings or those looking to secure their savings against the devaluation of the rupee. This recent hike is largely dictated by international market trends, where gold prices have been showing volatility, compounded by the local currency's performance.

How this affects your wallet

If you are currently in the market to buy gold, this price hike is bad news. A jump of Rs2,200 per tola adds a significant burden to the cost of bridal jewelry sets, which often weigh several tolas. If you are saving for a future purchase, you are effectively seeing your purchasing power diminish as the cost of the asset climbs.

  • Impact on weddings: Budgeting for dowry or jewelry gifts just became more expensive.
  • Investment value: While the price increase makes existing holdings more valuable on paper, it makes entering the market as a new buyer less attractive.
  • Retail premiums: Remember that the rate issued by the Sarafa Association is a benchmark. Local jewelers in your city may charge a premium for making charges (labor) and purity testing.

What should you do now?

If you are not in an immediate rush to buy jewelry, it is often wiser to wait for a correction in the market rather than panic-buying during a price spike. Monitor the daily rates issued by the association before visiting your local jeweler. If you are investing, consider diversifying your portfolio rather than putting all your capital into physical gold, which carries security risks and high premiums.

What to watch next

Keep a close eye on the global spot gold price. Since Pakistan imports a significant portion of its gold, any major shifts in the international market or SBP policies regarding import quotas will influence local rates in the coming weeks. We will continue to track these fluctuations to keep you updated on how your money is being affected by these market shifts.