1 tola gold price in Pakistan

Factors affecting 1 tola gold price in Pakistan this week

Gold has conventionally been considered a safe-haven investment, mainly during economic uncertainty. Demand for gold is quite high in Pakistan during wedding and festival seasons. Therefore, gold has been a popular investment option in the country for both individuals and businesses .However, investing in gold comes with its own set of risks and challenges. The 1 tola gold price in Pakistan can be volatile and subject to sudden fluctuations. Moreover, investors are required to be cautious of counterfeit gold, which can be prevalent in some markets.

The 1 tola gold price in Pakistan (24K) started the week at  Rs 195,000 at the ended  the week  at Rs 198600. If you are an investor and looking to invest in the bullion market,then keep reading on as we will discuss  some of most important factors affecting gold prices this week.

Global demand and supply

The global demand and supply for gold plays a significant role in determining its price in Pakistan. High global demand directly increases the 1 tola gold price in Pakistan.The Silicon valley bank collapse last week has triggered a panic situation among investors and now they are looking for safe havens .Therefore, it has increased the gold demand in the international and Pakistani market. The surging demand has sent the yellow metal’s prices to six-month highs.

The international gold market started the week at $ 1854 /ounce and ended the week at the $ 1919/ounce. It indicates the increasing gold prices trend in the international market.

The experts believe that spot gold could see some correction before rising further in the near term, possibly to $1,928/ounce.

The local Pakistani precious metals market will also continue to be impacted by the trend towards increasing global prices.

USD to PKR exchange rate

The US to PKR exchange rate has stabilized a little in the last week due to loan approval by China. The USD to PKR exchange rate started the week at Rs 275.70 and ended the week at Rs 279. Pakistan has to buy gold from the international market  to meet its local demand. Therefore, appreciation in the dollar value raises the bullion value in the country.

Foreign exchange experts believe that dollar value can increase in near future due to the worsening macroeconomic condition of the Pakistan. And that can start a good time for precious metal’s investors.


Inflation is another element of the Pakistani economy that affects the 1 tola gold price in Pakistan. While inflation can be a key driver of gold prices, it’s not the only factor to consider when analyzing the performance of gold as an investment.  In general, gold prices tend to rise when inflation increases. This is because gold is often viewed as a hedge against inflation, meaning that it can help investors protect their purchasing power during times of rising prices. When inflation rises, the value of fiat currencies like the PKR tends to decline. Experts are increase in gold demand as inflation is at peak level in Pakistan right now .Therefore, Pakistani investors might turn to gold as a safe-haven asset that can hold its value during economic uncertainty.

Political and economic stability

Political crisis is at its peak as current PML-N led government is trying hard to avoid upcoming provincial KPK and Punjab assembly elections. Furthermore, political uncertainty might increase as PML-N –PTI conflict is increasing before the upcoming election in April, 2023. In addition to that, government is trying hard to arrest Imran khan which would also escalate the situation. Here, PML-N government must play a positive role and resolve this political crisis as it might cause dangerous conflict between both parties.

On the other hand, Pakistan economy is in doldrums as its forex exchange reserves are hovering around $ 3 billion and economic outlook is worse.  Economic and political uncertainty will surely push 1 tola gold price in Pakistan further upwards in the domestic market.

Bottom line

It’s crucial to think about your motivations before making a gold investment. Are you planning to hold it as a long-term investment or a speculative one for the near future? Your choice of gold investment will depend on your financial objectives.

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