Gold prices rebound sharply after three-day slide

Gold prices in Pakistan jumped significantly on Friday after three consecutive days of decline, mirroring a strong rebound in the international market.

The All Pakistan Sarafa Association reported that the price of gold rose by Rs3,000 per tola, taking the new rate to Rs444,462 per tola. The price of 10 grams increased by Rs2,572, reaching Rs381,054.

Globally, gold prices surged by $30 per ounce, with the international price climbing to $4,221 per ounce. This rise follows a domestic decrease of Rs1,700 per tola just a day earlier.

Pakistan’s annual gold demand ranges between 60 and 90 tonnes, valued between $8 billion and $12 billion, but over 90 percent of the trade remains undocumented. A Competition Commission of Pakistan (CCP) study highlights that 70 percent of gold demand is driven by weddings and social functions.

The country also relies on imports, bringing in $17 million worth of gold in FY2024. Official reserves stood at 64.76 tonnes by the end of 2025, valued at nearly $9 billion.

The CCP report notes significant potential from the Reko Diq project, which could generate up to $74 billion over 37 years, including 10.79 million ounces of gold worth an estimated $54 billion at current prices. However, it warns that weak regulation may push much of this output into the informal economy.

Key issues in the sector include poor oversight, overlapping institutions, weak hallmarking enforcement, high compliance costs and widespread smuggling. The suspension of SRO 760 has added further uncertainty, affecting gemstone and jewellery exports.

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Gold trading remains concentrated in major markets such as Karachi and Lahore, where prices are still largely determined by trader associations due to the lack of a transparent pricing mechanism.

To address these challenges, the CCP recommends creating a unified regulatory authority, enforcing mandatory hallmarking, adopting digital tracking tools such as blockchain and introducing gold banking to formalise household assets. It also calls for aligning tax, labour and data regulations with global standards.