Gold Rate Decrease in Pakistan – Latest Updates and Market Analysis
Gold Rate Decrease in Pakistan – Latest Updates and Market Analysis. Gold is one of the most closely watched commodities in Pakistan. Every small rise or fall in its price directly affects buyers, sellers, and investors. Recently, the gold rate decreased in Pakistan, following a dip in international markets. This drop has created curiosity among people who want to know the latest gold prices, factors behind the fall, and future trends. In this article, we will explore everything in detail, from city-wise gold rates to the market analysis for 2025.
Current Gold Price in Pakistan – September 2025
According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the gold rate dropped sharply in line with the international market trend.
| Gold Type | Unit | Current Price (PKR) | Change |
|---|---|---|---|
| 24K Gold | 1 Tola | Rs. 355,200 | -1,400 |
| 24K Gold | 1 Gram | Rs. 30,427 | -120 |
| 22K Gold | 1 Tola | Rs. 325,500 | -1,200 |
| 22K Gold | 1 Gram | Rs. 27,900 | -105 |
Note: Prices may vary slightly across cities like Karachi, Lahore, Islamabad, and Peshawar due to local demand and supply conditions.
Why Did Gold Prices Drop in Pakistan?
1. International Market Trends
Gold rates in Pakistan are strongly linked with the global bullion market. International gold prices recently fell by $11 per ounce, settling around $3,339 per ounce. When international rates drop, Pakistan usually follows the same direction, although currency differences also play a role.
2. Strengthening Dollar Index
The US Dollar Index has gained strength in September 2025, making gold more expensive in other currencies. As a result, demand for gold has reduced internationally, leading to a decline in prices.
3. Federal Reserve Policy
The US Federal Reserve’s interest rate hikes have further lowered gold’s appeal as an investment. Higher interest rates make non-yielding assets like gold less attractive, pushing global investors away.
4. Currency Depreciation in Pakistan
Even though global gold prices decreased, Pakistanis still face high rates because the Pakistani Rupee continues to weaken against the dollar. The rupee has lost more than 25% since 2022, which offsets some benefits of lower global prices.
Gold Price Trends in Major Cities
Gold Rate in Karachi
Karachi, being the hub of gold trading, usually sets the tone for national prices. In September 2025, the Karachi gold rate for 24K is around Rs. 355,200 per tola.
Gold Rate in Lahore
The Lahore market follows Karachi closely but sometimes shows slight variations due to demand differences.
Gold Rate in Islamabad & Peshawar
In Islamabad and Peshawar, prices are almost similar, although local jewellers sometimes charge additional premiums based on supply shortages.
Factors Driving High Gold Prices in Pakistan Despite Decline
Weak Rupee Against Dollar
Even when international rates fall, the rupee-dollar exchange rate is the main driver of local prices. Since the rupee remains weak, gold buyers in Pakistan don’t feel the full benefit of the international price drop.
Inflation and Political Uncertainty
Pakistan’s economic instability and political turmoil continue to push people towards gold as a safe investment. This keeps demand alive, even when prices remain high.
Supply and Demand Imbalance
Currently, demand for gold jewellery is low due to inflation, but supply has increased as many people are selling gold for cash needs. This imbalance also affects market rates.
Historical Gold Price Performance (2022–2025)
| Year | Gold Price Per Tola (Avg.) | Key Reason |
|---|---|---|
| 2022 | Rs. 152,000 | Start of rupee depreciation |
| 2023 | Rs. 190,500 | Political instability, inflation |
| 2024 | Rs. 280,000 | Dollar hike, global uncertainty |
| 2025 | Rs. 355,200 | Currency devaluation, high demand |
Forward-Looking Market Analysis
Short-Term Outlook
Experts believe gold prices will remain volatile in September 2025 due to international dollar strength and local currency depreciation.
Long-Term Outlook
Unless the rupee recovers, gold will likely stay expensive in Pakistan. If the government works on stabilising reserves and boosting exports, gold imports may become cheaper in the coming years.
Impact on Investors
For investors, this is a mixed market. Short-term traders may benefit from price fluctuations, but long-term buyers should remain cautious.
Economic Potential of Pakistan’s Gem Industry
Pakistan has more than 51 mines of precious stones located in regions like Swat, Kashmir, Gilgit-Baltistan, and Balochistan. If the government invests in mining and value addition, this sector can:
- Boost exports
- Reduce trade deficit
- Create jobs
- Attract foreign investment
The gem and jewellery industry could be a game-changer for Pakistan’s economy if properly developed.
FAQs on Gold Rate Decrease in Pakistan
Q1: Why did the gold rate decrease in Pakistan in September 2025?
The main reasons are a decline in international gold prices, a stronger US dollar, and a drop in local demand.
Q2: What is the current 24K gold price per tola in Pakistan?
As of September 2025, the price is Rs. 355,200 per tola, though it may vary across cities.
Q3: Will gold prices go down further in 2025?
It depends on the rupee-dollar exchange rate and international trends. If the rupee strengthens, local prices could decrease further.
Q4: Why is gold still expensive in Pakistan despite a global decline?
Because of the rupee depreciation, Pakistani consumers face high rates even when international prices fall.
Q5: Is gold a good investment in 2025?
Gold is still considered a safe-haven asset, especially during inflation and political uncertainty. However, short-term investors should be cautious.
Conclusion
The gold rate decrease in Pakistan has given temporary relief to buyers, but the overall market remains under pressure due to currency depreciation and economic instability. While international prices are falling, local conditions keep gold expensive for Pakistani consumers. Looking ahead, much depends on the rupee’s strength, global market trends, and government policies.
