Gold rates increase in Pakistan — 5 December, 2025

Gold prices in Pakistan once again recorded a sharp rise on Friday, December 5, 2025, crossing Rs 444,000 per tola after several days of decline in both local and international markets.

According to the data released by the All Pakistan Gems and Jewelers Association (APGJA), the price of gold increased by Rs 3,000, bringing the rate to Rs 444,462 per tola. Similarly, the price of 10 grams of gold rose by Rs 2,572, reaching Rs 381,312.

The price of gold in the global market also witnessed an increase, where the price of gold climbed by $30 per ounce, reaching $2,221.

Pakistan revised its gold pricing mechanism last year, introducing a system under which domestic rates are set $20 per ounce higher than international prices. This adjustment is meant to account for local market dynamics and premium charges.

Gold maintains its significance as a vital investment and a store of value, particularly in times of economic uncertainty and high inflation. Historically, it has served as a reliable hedge against the depreciating value of fiat currencies.

Investors often turn to gold to diversify their portfolios and mitigate risks associated with market volatility in stocks and bonds. This tangible asset offers a sense of security, especially in economies like Pakistan, where political instability and currency fluctuations are frequent concerns. Its global acceptance ensures high liquidity, making it easy for investors to buy or sell as needed.

Furthermore, gold’s demand is driven not only by investment but also by its extensive use in the *jewelry industry* and in *technological applications. This dual-demand structure provides a robust floor for its price, making it less susceptible to deep, prolonged slumps compared to purely speculative assets.

For long-term financial planning, the allocation of a portion of one’s wealth to gold is a common strategy employed by finance experts, recognizing its role in **preserving purchasing power* across generations.