Gold, considered a hedge during times of uncertainty, gave 45% return to investors in Pakistan in the fiscal year 2024-25, when compared to its per tola rate on the last day of FY2023-24.
According to the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), gold price per tola on June 30, 2025 stood at Rs350,200 in Pakistan, against Rs241,700 on June 29, 2024.
“The increase in gold prices in Pakistan was mainly in line with rise in international rates,” local trader Abdullah Abdul Razzak Chand told Business Recorder.
As per data shared by the APGJSA, international rate of gold increased by $956 to reach $3,282 per ounce in FY25, against $2,326 per ounce it had stood at on the last day of FY24.
Chand mentioned that geopolitical tensions largely contributed to the increase in international rate of gold.
“Investors moved to safe haven assets amid Russia-Ukraine war, Gaza crisis, Pakistan-India tensions, and Iran-Israel war in FY25,” he said. “Rupee-dollar parity did not have a significant impact on gold prices in Pakistan.”
Pakistan rupee ended the fiscal year 2024-25 at 283.76 level against the US dollar, down by 1.95% or Rs5.42 against 278.34 it had closed at on the last session of FY2023-24.
However, with rising import demand in the country, analysts are seeing the rupee at 292-294 level against the dollar.
“If the rupee depreciates, gold prices will increase further along with other imports in Pakistan,” Chand envisaged.
Meanwhile, the recent US-China trade deal on how to expedite rare earth shipments to the US has brought hopes of a slowdown in geopolitics in the fiscal year 2025-26.
Citibank, US banking subsidiary of Citigroup that is a financial services multinational corporation, expects the price of gold to consolidate around $3,100 to $3,500 per ounce in the third quarter.
“We expect continued price consolidation … and highlight our view that we may have already seen the highs at $3,500/oz in late April as the gold market deficit is peaking soon if not already,” Citi said in the note.
