Precious metal prices: Gold and silver, on 31st July 2025
Gold prices in Pakistan have been on a rollercoaster ride over the past year, with fluctuations that reflect the market's volatility. The price of the precious metal is influenced by several key factors, making accurate forecasts a challenge.
As a worldwide commodity like oil, gold's price in Pakistan is closely tied to international markets. Changes in global prices directly impact the domestic market, with the country remaining a net importer of gold. The Pakistani Rupee's exchange rate also plays a significant role, as depreciation against the US Dollar makes gold more expensive to buy in rupees.
Economic uncertainty and instability, such as inflation or geopolitical risks, drive demand for gold as a safe-haven asset, pushing prices higher. Higher inflation and lower real interest rates worldwide generally increase gold's appeal as a store of value, contributing to price increases.
Local demand, especially for jewelry and investment purposes, also influences price fluctuations on a daily basis. Interestingly, while jewelry is a driver of gold prices, it is a weaker factor as most people buy jewelry to keep it for years.
Investor behavior and economic uncertainty are also crucial factors. When the Pakistani rupee is under pressure, investors take refuge in gold as a safe-haven metal. Gold and silver, which have been used for centuries as valuable commodities and for making coins, have gained support in times of economic uncertainty in countries like Pakistan.
On July 31, 2025, the price of 10 grams of gold in Pakistan was Rs302,641, a decrease of Rs1,714 from the previous day. The price of 10 grams of silver in Pakistan on the same day was Rs3,344. The silver rate per tola in Pakistan has remained consistent at Rs3,900 for the past 10 sessions, while the gold rate has shown some fluctuation.
Gold is recognised as a symbol of wealth across cultures, and its demand increases when investors rush to buy it. Despite the challenges in predicting gold prices, understanding these factors can help investors make informed decisions in the Pakistani bullion market.
- The valuation of gold in Pakistan is affected by international market fluctuations, as it is a worldwide commodity like oil.
- Changes in global prices directly impact the domestic gold market, with Pakistan remaining a net importer of this precious metal.
- Gold's appeal as a store of value increases under economic uncertainty and inflation, as people seek it as a safe-haven asset.
- Investor behavior plays a significant role in gold's price, with an increase in demand stemming from a rush to buy gold as a symbol of wealth.
- The Pakistani Rupee's exchange rate also influences gold's price, making it more expensive to buy gold when the Rupee depreciates against the US Dollar.
- Silver, like gold, gains support as a valuable commodity during times of economic uncertainty, and its price per tola in Pakistan has remained steady while gold's has shown fluctuation.
