Gold’s sharp rise over the past few months has turned into a windfall for Pakistanis who held on to their jewellery or savings, while those forced to sell earlier are now counting their losses.
Prices in the local market have climbed steadily in recent weeks, tracking gains in the international bullion market. For many households, gold has once again proven why it is often seen as the safest place to park savings during uncertain times.
On October 28, 2025, the price of gold in Pakistan stood at Rs416,362 per tola, while ten grammes were priced at Rs356,963. On the same day, gold was trading at $3,940 per ounce internationally.
Just three months later, on January 29, 2026, gold jumped to Rs572,862 per tola, marking an increase of Rs156,500 in a short span.
Even within 2026 alone, the rise has been massive. At the start of January, gold was priced at Rs454,562 per tola. By February 4, it had climbed to Rs529,162, up Rs74,600 in just over a month.
Regret for sellers, relief for holders
For those who sold gold during financial stress, the rally has been painful to watch.
Shehroze Khalid, who exchanged his family’s gold in March 2024 to meet urgent needs, says he regrets the decision deeply. He sold eight tolas of his wife’s gold for Rs1.5 million.
“If I had waited, that same gold would be worth more than Rs4.2 million today,” he said. “I could buy a or a brand new Suzuki Cultus for this amount. I should have asked for help or taken a loan instead.”
On the other side are families who managed to hold on to their gold. For them, the surge has brought a sense of financial relief, especially at a time when inflation continues to squeeze household budgets.
The sharp rise has also made gold increasingly out of reach for families who must buy it for traditional reasons.
Rizwan Ahmad, whose daughter is set to marry after Eid, says the prices have turned gold into a luxury he can barely afford.
“Gold was already expensive, but now that it is above Rs500,000 per tola, it feels impossible,” he said. “How can an ordinary family manage this?”
Why gold prices are rising
Experts say gold prices in Pakistan closely follow movements in the international market. Globally, gold has attracted strong demand during periods of economic uncertainty and political tension.
Analysts point to renewed volatility in global markets, driven in part by political developments in the US. Investors have increasingly moved towards assets seen as safe and reliable.
“In a world where almost every financial activity carries some form of credit risk, gold remains the only asset without a counterparty,” Diego Franzin, head of portfolio strategies at Plenisfer Investments, told Al Jazeera in an interview. “It does not depend on political decisions. That is why it provides security.”
Last week, gold touched a record high of nearly $5,595 per ounce, while silver also hit an all-time peak.
More gains expected
Major global banks expect the rally to continue. JP Morgan has forecast gold prices at $6,300 per ounce by the end of 2026, citing strong demand from central banks and investors. The bank estimates central-bank gold purchases could reach 800 tonnes next year as countries diversify their reserves.
Deutsche Bank has also maintained its forecast of $6,000 per ounce in 2026, pointing to sustained investor interest despite price adjustments.
In Pakistan, analysts believe gold may rise further if global prices continue upward. While commodities carry risks, precious metals are still widely viewed as a safer investment during uncertain times.
For now, the surge has clearly drawn a line between those who held their gold and those who had no choice but to let it go.
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