How the Gold Rate Is Decided in Pakistan
Every morning, jewellers across Pakistan wait for one number. But that number is not decided in Pakistan at all — it is built from two international pieces, and understanding them tells you why the rate moves before any announcement is made.
Step 1: The international spot price
Gold trades around the clock in London, New York and Asia in US dollars per troy ounce (31.1035 grams). This is called the spot price. When it rises by $10, the value of a tola in Pakistan rises by roughly Rs 2,600 at today's exchange rate, even if nothing changes inside Pakistan.
Step 2: The dollar to rupee rate
The dollar price is converted into rupees at the interbank USD to PKR rate. This is why gold in Pakistan sometimes rises on a day when international gold was flat: if the rupee weakened, gold became more expensive in rupees. The two numbers multiply together, so a weak rupee and a rising world price together produce the biggest jumps.
Step 3: The association announcement
The All Pakistan Sarafa Gems and Jewellers Association (APSGJA) reviews the international price and the exchange rate and announces the official daily benchmark per tola for 24 karat gold. Sarafa associations in each city and individual jewellers then trade around that benchmark. Rates for 22K, 21K and 18K are simple proportions of the 24K rate: multiply by 22/24, 21/24 or 18/24.
Step 4: What your jeweller adds
The benchmark is the value of the metal only. Your jeweller adds making charges for turning metal into jewellery, and on resale usually deducts a small percentage. That is why two shops on the same street can quote different final prices on the same day while both honestly following the same rate. Our making charges guide breaks those extras down.
On this site, the live rate follows steps 1 and 2 the moment they move, so you can watch the market during the day. Check it on the homepage.