Gold prices in Pakistan fell sharply on the final day of the year, offering brief relief to buyers. However, the annual picture tells a very different story. Throughout 2025, gold became significantly more expensive, reflecting economic pressures at home and global market trends.
According to industry data, the decline at year-end does little to offset the steep increases recorded during the past twelve months.
Gold Prices Drop Across Pakistan
On the last trading day of the year, gold prices recorded a notable decrease across the country. The price of one tola of gold fell by Rs2,500. After this drop, it settled at Rs456,962 per tola.
Also Read: Gold Prices Plunge by Over Rs 10,000 per Tola Across Pakistan
Similarly, the price of 10 grams of gold also declined. It fell by Rs2,143 to reach Rs391,771. These figures were released by the All Pakistan Gems and Jewellers Association, the country’s main industry body.
This sudden drop came as a surprise to many buyers and traders. Gold prices had remained volatile in recent weeks. As a result, some consumers delayed purchases in anticipation of corrections.
Jewellers reported cautious trading activity on the final day. Many buyers remained uncertain about price direction in early 2026.
International Market Also Sees Decline
The downward trend was not limited to Pakistan. Gold prices also fell in the international market on the same day. According to market data, gold lost $25 per ounce globally.
After this decline, the international gold price stood at $4,346 per ounce. Global prices often influence Pakistan’s local rates. This is due to import dependence and currency factors.
International gold prices are driven by several forces. These include interest rates, inflation expectations, and geopolitical uncertainty. Even small shifts in global sentiment can impact local markets quickly.
How Much Did Gold Rise in 2025?
Despite the year-end decline, 2025 proved to be an exceptional year for gold price growth. Over the full year, the price of one tola of gold increased by Rs184,362.
Likewise, the price of 10 grams of gold rose by Rs158,060 during the year. These increases represent one of the strongest annual gains in recent years.
In the global market, gold also recorded substantial growth. During 2025, the international gold price rose by $1,732 per ounce. This reflects strong global demand for safe-haven assets.
Why Gold Remained Expensive This Year
Several factors contributed to gold’s strong performance in 2025. Economic uncertainty remained high across many regions. Investors often turn to gold during such periods.
In Pakistan, currency weakness played an important role. When the local currency loses value, imported commodities become more expensive. Gold prices tend to rise as a result.
Moreover, inflation concerns continued throughout the year. Gold is widely seen as a hedge against inflation. This perception supports sustained demand.
Global tensions and financial market volatility also boosted gold’s appeal. Central bank policies in major economies added further uncertainty.
What This Means for Buyers and Investors
For ordinary consumers, high gold prices made jewellery purchases more costly. Weddings and traditional events became more expensive for many families.
For investors, however, gold delivered strong returns in 2025. Those who bought earlier in the year benefited from rising prices.
Looking ahead, analysts expect continued volatility. Much will depend on global economic conditions and domestic currency stability.
A Volatile Year Ends on a Softer Note
In conclusion, gold prices closed the year with a noticeable drop. Yet, the broader trend remains clear. Gold became significantly more expensive over 2025.
The year-end decline may offer temporary relief. However, the long-term outlook suggests continued uncertainty in the gold market.
