The gold price in Pakistan fell Rs3,000 to Rs431,536 per tola on Thursday 22 October, according to rates from the All-Pakistan Gems and Jewellers Sarafa Association reported by Business Recorder. It was the third fall in three sessions, taking the total drop since Monday to Rs7,500. The driver was global: spot gold fell to its lowest level since 14 October as a fresh rise in oil prices strengthened expectations that interest rates will stay higher for longer. For jewellers, wedding buyers and households that save in gold, the local price is now moving almost entirely with the world price.
The short version
- 24-karat gold fell Rs3,000 to Rs431,536 per tola; 10 grams fell Rs2,572 to Rs369,972.
- Since Monday’s Rs439,036, the tola price is down Rs7,500, or 1.7% (Knock-On calculation).
- International gold fell $30 to $4,090 an ounce, down $75 since Monday.
- Silver fell Rs121 to Rs6,086 per tola.
What happened
The local tola price was unchanged on Monday at Rs439,036, then fell Rs3,600 on Tuesday, Rs900 on Wednesday and Rs3,000 on Thursday, Business Recorder’s daily reports show. Over the same period the international price, as quoted by the Sarafa association, fell from $4,165 to $4,090 an ounce. Reuters, in a report carried by Business Recorder, said spot gold fell 1.1% to $4,094.90 early on Thursday, its lowest since 14 October, when Knock-On last covered a Rs3,000 drop in the gold price.
Three straight falls have taken Rs7,500 off a tola
Daily change in the 24-karat gold price per tola, rupees, 19–22 October 2026
Why it matters
The gold price in Pakistan is set by the world price converted at the rupee rate, and the rupee was almost flat at 276.85 to the dollar on Thursday. A $75 fall in an ounce, applied to a tola (about 0.375 of a troy ounce) at that rate, is worth about Rs7,800, close to the Rs7,500 local fall (Knock-On calculation). The global fall in turn traces to oil. Brent rose above $111 a barrel after new attacks in the Gulf, and OANDA analyst Kelvin Wong told Reuters that rising oil could lift inflation expectations and the chance of higher rates, which raises the cost of holding gold, an asset that pays no interest. CME FedWatch put the chance of a US rate rise in December at about 90%.
The knock-on effects
First order: gold price in Pakistan gives buyers a small window
A tola now costs Rs7,500 less than on Monday. For wedding buyers and jewellers restocking, that is a modest saving on a very high base, and it could reverse quickly if Gulf tensions send investors back into gold.
Second order: higher rates compete with gold for savings
The same pressure is visible at home. The IMF said on Thursday that Pakistan may need tighter monetary policy if the regional crisis persists, and the State Bank decides on rates on 26 October. If returns on deposits and government paper stay high, households have less reason to park savings in gold.
Third order: oil cuts both ways
Gold usually gains from geopolitical fear, yet this week the oil effect on interest rates has dominated. The same oil rise helped drive a 2,006-point fall in the KSE-100 today, so savers are seeing both shares and gold lose value in the same session.
Who could benefit
- Wedding buyers: jewellery costs slightly less than at the start of the week.
- Jewellers restocking: lower prices reduce the cash needed to rebuild inventory.
- Savers in bank deposits: higher-for-longer rates support their returns.
Who may face pressure
- Households holding gold: the value of their holdings has fallen 1.7% this week.
- Gold-backed borrowers: lower collateral values can reduce how much they can borrow.
- Silver holders: silver fell further in percentage terms, down Rs148 a tola since Monday.
What to watch
- 26 October: the SBP monetary policy decision.
- 27–28 October: the US Federal Reserve meeting; markets price only a small chance of a rise this month.
- US PCE inflation data next week: a key gauge for the Fed.
- $4,073 an ounce: the 14 October low that a Reuters analyst flagged as support.
Sources
- Business Recorder, Gold price drops by Rs3,000 per tola in Pakistan, 22 October 2026
- Business Recorder, Gold price per tola drops Rs900 per tola in Pakistan, 21 October 2026
- Business Recorder, Gold price per tola drops Rs3,600 per tola in Pakistan, 20 October 2026
- Business Recorder, Gold prices remain unchanged in Pakistan, 19 October 2026
- Reuters via Business Recorder, Gold drops over 1% as oil rally reinforces higher-for-longer rate outlook, 22 October 2026
- Business Recorder, IMF flags rising inflation risks for Pakistan amid Middle East conflict, 22 October 2026
- Business Recorder, Pakistan rupee records gain against US dollar, 22 October 2026
This is analysis, not investment advice. Figures are as of 22 October 2026.
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