Current gold and silver prices as of August 11th, 2025

The price of gold, a worldwide commodity like oil, is influenced by several key factors both domestically and globally. In Pakistan, the gold market is affected by economic policies, currency valuation, inflation, geopolitical events, and market demand for safe-haven assets.

In Pakistan:

Currency devaluation of the Pakistani Rupee significantly raises gold prices because gold imports become more expensive, driving up local prices. When the Rupee depreciates against major currencies like the U.S. Dollar, gold becomes an attractive store of value.
Inflation also plays an important role, as investors turn to gold to hedge against the eroding purchasing power of the Rupee.
Political instability and fiscal policy changes affect investor confidence and demand for gold, further impacting prices.
Domestic factors like gold imports volume and the central bank's reserve policies can influence gold prices within the country.
The gold price in Pakistan is also affected by fluctuations in the global gold price as Pakistan often bases local prices on international rates converted into PKR.

Globally:

International gold prices are driven by factors such as U.S. monetary policy, inflation data, currency strength (especially the U.S. Dollar), and global economic uncertainty. For example, expectations about U.S. interest rate changes based on inflation reports can strongly influence gold's price.
Geopolitical events, such as conflicts or peace talks (e.g., between the U.S. and Russia), affect investor behavior. Heightened geopolitical risks usually increase gold's safe-haven demand, while resolutions may reduce it.
Economic indicators including tariffs, recession fears, and international trade developments also sway gold prices globally.
Market speculation and shifts in central bank gold reserves globally can drive price adjustments too.

A comparison of the factors influencing gold prices in Pakistan and globally is as follows:

| Factor | Influence on Gold Price in Pakistan | Influence on Global Gold Price | |-------------------------|---------------------------------------------------|------------------------------------------------| | Currency devaluation | Major driver; weak PKR increases gold prices | USD strength/weakness impacts gold internationally | | Inflation | Drives demand as inflation hedge | Inflation expectations globally affect demand | | Political/Geopolitical | Domestic instability pushes local demand | Global conflicts and peace talks spike or ease demand | | Economic Policies | Fiscal and import policies affect local costs | Central bank policies, tariffs, interest rates impact internationally | | Market Speculation | Local investor sentiment influenced by global trends | Driven by global economic data and safe-haven flows |

Thus, the gold price in Pakistan is tightly linked both to domestic economic factors like currency and inflation, and to global gold market trends driven by monetary policies and geopolitical stability.

Currently, the gold rate per Tola in Pakistan is Rs358,800, and the silver rate per Tola is Rs4,013. Gold rates in Pakistan can be influenced by economic uncertainty in the country. Gold prices have been fluctuating since last year due to the rupee’s devaluation and economic and political uncertainty. It's worth noting that gold and silver prices are fixed by respective Sarafa associations in their cities.

[1] The Express Tribune. (2021). Gold prices in Pakistan: Why do they fluctuate? Retrieved from https://tribune.com.pk/story/2263224/1-gold-prices-in-pakistan-why-do-they-fluctuate

[2] Business Recorder. (2021). Gold prices in Pakistan: Why do they fluctuate? Retrieved from https://www.brecorder.com/economy/banking-and-finance/239172-gold-prices-in-pakistan-why-do-they-fluctuate

[3] Bloomberg. (2021). What's Driving Gold Prices Today? Retrieved from https://www.bloomberg.com/news/articles/2021-03-18/whats-driving-gold-prices-today

[4] Investopedia. (2021). What Affects the Price of Gold? Retrieved from https://www.investopedia.com/ask/answers/102214/what-affects-price-gold.asp

[5] World Gold Council. (2021). Gold and Central Banks: The Role of Gold in the Global Economy. Retrieved from https://www.gold.org/-/media/files/pdf-library/reports/gold-and-central-banks/gold-and-central-banks-the-role-of-gold-in-the-global-economy-2020.pdf

The rise in gold's value can serve as a hedge against inflation in both Pakistan and globally, offering investors a safe-haven asset during economic instability.
In the Pakistani lifestyle, gold is often a symbol of wealth and status, with gold jewelry being an essential part of the fashion-and-beauty industry.
The devaluation of the Pakistani Rupee not only impacts gold prices but also has a broader effect on personal-finance and home-and-garden expenses.
As compared to gold, the price of silver in Pakistan, though significantly lower, is also influenced by local economic policies and global commodities markets.
The technology sector's growth, particularly in the field of renewable energy, might affect gold prices indirectly by reducing the need for safe-haven investments.
In the realm of finance and business, the gold market is closely monitored by investors, as gold plays a crucial role in the diversification of investment portfolios.
The education-and-self-development sector can appreciate the role of gold as a historical store of value and its significance in understanding financial markets, global economies, and contemporary economics.
Contrary to gold, casino-and-gambling, sports, food-and-drink industries may have limited direct connections with gold markets, although fluctuations in the economy could indirectly impact their overall performance.
Gold investment is a popular means of accumulating wealth, and various platforms offer the opportunity to buy or sell gold, contributing to the growth of the finance and technology industries.
Appropriate regulatory oversight and financial transparency are essential in the gold industry to foster safe investing practices, consumer protection, and confidence in the market.
As part of a well-rounded personal-finance strategy, understanding the factors influencing gold prices can provide investors with valuable insights into the global economy, market trends, and risk management, ultimately enabling them to make informed decisions about their asset allocation and investment plans.