Gold Rates Hit All-Time Highs in International Market as Investors Rush to Safety

Global gold rates shattered every record this week, climbing past $4,400 per ounce. This massive surge comes as the US dollar weakens and global tensions rise. In Pakistan, local prices followed the international trend, reaching approximately Rs 465,000 per tola as investors look for stable ways to protect their wealth.

On December 22, 2025, spot gold prices climbed to an incredible $4,404.12 per ounce. This marks a 67% increase since the year started. For the first time ever, the metal has crossed the $4,400 threshold, leaving many experts stunned by the speed of the rally.

Weak Dollar Drives Global Demand

The US dollar is losing its grip, which is great news for gold. The US Dollar Index (DXY) fell 10% this year to a low of 98.47. When the dollar drops, gold becomes cheaper for people using other currencies. This inverse relationship is pushing global demand higher every single day.

People are scared of global instability. Geopolitical tensions in the Middle East and Ukraine are making investors nervous. They are moving money into “hard assets” to stay safe. At the same time, central banks in China and India have bought over 950 tonnes of gold this year alone. They want to move away from the dollar and secure their own reserves.

While everyone talks about gold, silver is the real winner of 2025. It jumped to $69.44 per ounce, a 138% gain this year. Silver is unique because it is both a safe investment and an industrial necessity. Due to a bottleneck of supply brought on by the enormous demand for AI data centers and electric cars, prices are approaching $70.

Local Impact: Gold Rates in Pakistan

In Pakistan, the situation is even more intense. The gold rates in Pakistan reached roughly Rs 465,000 per tola for 24K gold today. Domestic prices are staying high because the rupee is struggling against the dollar. Local investors are buying gold to protect their savings from inflation.

What happens next? Analysts at J.P. Morgan believe gold could average $5,055 by late 2026. However, some traders might sell now to take their profits before the holidays. If you are watching the gold rates, keep an eye on central bank moves. Their continued buying will likely keep prices high well into the new year.