Precious metal investors in Pakistan saw a welcome uptick in their holdings as both gold and silver prices recorded notable gains on Friday, December 20, 2025. The surge in local markets was directly fueled by a strengthening trend in international markets, providing a boost to the domestic bullion trade.
Market Movement: A Detailed Look at the Numbers
The price of gold, per tola (11.66 grams), increased by a substantial Rs 1,300 in a single day. This pushed the new price for 24-karat gold to Rs 245,300 across major markets in Pakistan, including Karachi, Lahore, and Islamabad. Similarly, the price for 10 grams of 24-karat gold rose by Rs 1,115, settling at Rs 210,300.
The positive momentum was not limited to gold. Silver, often a more volatile precious metal, also advanced. The price of silver per tola climbed by Rs 20, reaching Rs 2,820. For 10 grams of silver, the price increased by Rs 17.15, closing the trading day at Rs 2,417.86.
The Global Catalyst Behind the Rally
The primary driver for this upward movement in Pakistan's local markets was a firm trend in the international bullion market. On the global stage, the price of gold rose by $10, reaching $2,485 per ounce. This international strength directly influences local pricing, as Pakistan imports gold to meet domestic demand. The increase in the global benchmark makes imported gold more expensive, a cost that is passed on to consumers and traders in the local currency.
Market analysts closely monitor the US dollar's value, geopolitical tensions, and central bank policies, as these factors heavily influence global gold prices. The rise observed on December 20th suggests renewed investor interest in gold as a safe-haven asset or a response to specific economic data releases.
Implications for Investors and the Economy
This price hike has immediate implications for various stakeholders. For individual investors and households, especially those who hold gold as savings or for ceremonial purposes, the increase represents a growth in the nominal value of their assets. For jewellers and bullion traders, such volatility requires careful inventory management and pricing strategies to maintain margins.
From a broader economic perspective, movements in gold prices can reflect currency stability and inflationary expectations. A rising gold price in rupee terms can sometimes indicate concerns about the local currency's purchasing power, though it is primarily dictated by global dynamics in this import-dependent scenario.
The current market scenario underscores the interconnected nature of Pakistan's economy with global financial trends. Investors and traders are advised to stay informed about international market movements, as these will continue to be the dominant factor determining daily prices for precious metals in the country. The coming days will reveal whether this upward trend sustains or if market corrections are on the horizon.
