Gold has shattered previous records globally and in Pakistan, triggering waves of alarm across households, financial markets and policy circles alike. Starting from PKR 283,015 (per tola) in January 2025, gold prices rose almost every month reaching PKR 414,411 in October 2025 - a cumulative increase of around 46.43 percent in gold prices over last nine months in Pakistan.

Although month-to-month changes remain positive, notable jumps occurred in Feb, Sep and Oct, bringing the average monthly growth rate to approximately 4.33 percent. What does it signal for the economy of Pakistan?

A consistent upward movement in gold prices indicates that households and businesses are using gold as a store of value due to low real returns on rupee-denominated assets. Since rising gold prices are often viewed as a hedge against inflation and against low real yields, this persistent rise suggests that........

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