Gold soars Rs184,000/tola in 2025
At current prices, the looted gold is worth around $70 million. PHOTO: PIXABAY
Gold capped a historic year in Pakistan with prices near record highs, underscoring how global monetary shifts and unprecedented demand reshaped the precious metals landscape in 2025.
The price of 24-karat gold per tola surged by Rs184,362 over the year, climbing from Rs272,600 on December 31, 2024 to Rs456,962 by December 31, 2025, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA). Silver also posted exceptional gains, with 24-karat, per-tola price rising from Rs3,350 to Rs7,718 during the same period.
Although local rates edged lower on the final trading day of the year, with gold slipping by Rs2,500 per tola and silver by Rs212, the annual performance reflected powerful global forces rather than short-term volatility.
Globally, gold notched its biggest annual increase in 46 years, while silver and platinum posted their strongest yearly performances on record, according to Reuters. Spot gold slipped 0.3% to $4,331.73 per ounce by 10:15 am ET after touching a multi-week low, while US gold futures for February delivery fell 0.9% to $4,346.40 per ounce.
Analysts broadly agree that 2025 marked the year when the so-called de-dollarisation trade went mainstream. Central banks, particularly in emerging markets, continued to diversify reserves away from the US dollar amid geopolitical tensions, sanctions risk, and ballooning sovereign debt. According to the World Gold Council (WGC), central banks bought a net 53 tonnes of gold in October alone, the strongest monthly increase of the year and 36% higher month-on-month.
"Central bank demand for gold remained robust in October, totalling 53 tonnes and continuing the strong trend seen throughout the year," said Krishan Gopaul, Senior Analyst for EMEA at the WGC, in a report highlighted by Kitco News' crypto and markets reporter Ernest Hoffman. He noted that reported net purchases reached 254 tonnes through October 2025, slower than the pace of the previous three years, likely reflecting higher prices, but still firmly positive.
Buying remained concentrated among a familiar group of sovereigns. Poland's central bank re-entered the market after a brief pause, purchasing 16 tonnes in October and lifting its gold reserves to 531 tonnes. Brazil also added 16 tonnes, while Uzbekistan, Indonesia, Turkey, China, Kazakhstan and several others recorded smaller additions. Russia, by contrast, was the only central bank to report a monthly decline, trimming reserves by three tonnes amid reports that it has been using gold to support international payments.
"Even with higher prices, sustained activity from emerging-market central banks strongly suggests these purchases are strategic rather than opportunistic," Gopaul said, reinforcing gold's role amid persistent macroeconomic uncertainty. A WGC survey found that 95% of central banks expect global gold reserves to increase further in the year ahead.
Longer-term data underline the scale of this shift. A visual analysis by Aneesh Anand of Visual Capital shows that since 2000, Russia and China have each added more than 1,800 tonnes of gold to their reserves, more than triple the next largest buyers. Using data from the WGC, IMF and World Bank, the analysis highlights how central bank gold accumulation has accelerated sharply in recent years as trust in traditional reserve currencies has been tested.
Alongside central banks, 2025 also saw the rise of new gold buyers. Retail demand, particularly from China, surged as households sought safety from property market stress and financial volatility. At the same time, the crypto industry entered the physical gold market in a major way. Stablecoin issuer Tether purchased 26 tonnes of gold in the third quarter alone, surpassing many central banks and lifting its total holdings to a reported 116 tonnes, making it the largest non-sovereign holder of gold.
Adnan Agar, Director at Interactive Commodities, said gold's near-66% growth in 2025 was primarily driven by central bank buying, especially by China, alongside de-dollarisation and retail investor "fear of missing out (FOMO)." He noted that gold's rise from around $1,800 in late 2023 to near $4,440 highlighted how structural demand, not speculation alone, powered the rally.
In 2025, the Pakistani rupee (PKR) recorded a modest depreciation against the US dollar, closing the year around 280.15, compared with 278-279 at the start of the year. This implied a net calendar-year depreciation of roughly 0.61%. On the final trading day, the PKR showed no day-over-day change, settling at 280.15, while posting a depreciation of 0.57% CYTD and an appreciation of 1.29% FYTD, according to Ismail Iqbal Securities. The currency saw heightened volatility in the first half, weakening to 293.33 in March amid debt and import pressures, before recovering later on the back of IMF-supported reforms, stronger remittances, and easing inflationary pressures.