Precious metal prices on the 19th of September, 2025
In Pakistan, the gold price has been experiencing fluctuations since last year, primarily due to the devaluation of the rupee and economic and political uncertainty. The bullion market in the country is volatile and difficult to predict due to multiple reasons.
Gold, often considered an inflation hedge and a safe-haven asset in times of economic instability, is widely used in the making of jewelry in Pakistan. On September 19, 2025, the current price of gold for 10 grams stood at Rs332,218, while a tola (approximately 11.66 grams) of 24 carat gold was priced at Rs387,500. Interestingly, both prices decreased compared to the previous day, with a tola of 24 carat gold decreasing by Rs1,100 and 10 grams of gold decreasing by Rs943.
The prices of gold and silver in Pakistan are fixed by respective Sarafa associations in their cities. The current silver price today for 10 grams on September 19, 2025, was Rs3,812, and a tola of 24 carat silver was priced at Rs4,447.
The gold price in Pakistan is influenced by various factors such as changes in the local currency value (Pakistani Rupee), global gold prices, interest rates (with low interest rates typically increasing gold value), geopolitical uncertainties, and domestic political and economic stability. Additionally, investor demand and international market trends also play significant roles. Gold is a safe-haven asset in Pakistan, where it is often used as a refuge by investors when the rupee is under pressure.
It's important to note that demand for gold can also drive its mortgage rates, although it is a weaker factor as most people buy jewelry to keep for years. Jewelry demand can impact the gold price, but it's not as significant as investor behavior, which can greatly affect gold prices when investors rush to buy it as a refuge when the rupee is under pressure.
Gold rates are influenced by a combination of factors, including demand and supply, the value of the rupee against the US dollar, international prices, interest rates, investor behavior, and economic uncertainty. As a worldwide commodity, similar to oil, the price of gold in Pakistan is also affected by the trajectory of the US dollar and international gold rates, as the country is a net importer of the precious metal.
In conclusion, the gold market in Pakistan remains volatile due to several factors, making it an interesting asset to watch for investors and consumers alike.
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