Gold prices retreat in Pakistan after sharp surge

KARACHI: Gold prices fell sharply in Pakistan on Saturday after a sharp increase a day earlier.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), gold had risen by Rs10,700 per tola on Friday, but the price fell by Rs2,000 on Saturday.

Following the decrease, the new price of gold stands at Rs452,262 per tola. The price of 10 grams of gold dropped by Rs1,715 to reach Rs387,741.

In the international market, gold prices fell by $20 per ounce to $4,299. Meanwhile, the price of silver per tola declined by Rs220 to Rs6,464.

Pakistan’s annual gold demand stands between 60 and 90 tonnes, valued at roughly $8 billion to $12 billion, but more than 90 per cent of the trade remains undocumented.

A Competition Commission of Pakistan (CCP) report on the country’s gold market notes that around 70 per cent of domestic demand is linked to weddings and social events.

Pakistan also relies on gold imports, with $17 million worth of gold imported in the 2024 fiscal year.

The country’s official gold reserves were recorded at 64.76 tonnes by the end of 2025, valued at nearly $9 billion.

The report further states that the Reko Diq project could generate up to $74 billion in revenue over the next 37 years. Based on current prices, the project is expected to yield 17.9 million ounces of gold, valued at approximately $54 billion.