Gold became cheaper in Pakistan this week — though “cheaper” is a relative word at these levels. According to the rates issued by the All Pakistan Gems and Jewellers Sarafa Association (APGJSA), the association that announces daily bullion prices, 24-karat gold closed on Thursday, 22 October, at Rs 431,536 per tola, down Rs 3,000 in a single day.
The Week’s Numbers in Plain Words
A tola is the traditional unit for gold in our region, equal to about 11.66 grams. On Wednesday, 21 October, the same tola cost Rs 434,536, so gold has fallen Rs 3,900 over two days. For those who buy by weight, 10 grams of 24-karat gold were priced at Rs 369,972 on Thursday.
Silver moved in the same direction. It closed at Rs 6,086 per tola, down Rs 121 on the day. In the international market, gold stood at $4,090 per ounce, down $30 — an ounce being the unit used for gold trading worldwide. The local fall, in other words, followed the world price down, as it normally does: Pakistani rates are built from the international price, converted at the dollar-rupee exchange rate.
The Puzzle: Why Did Gold Fall While Oil Rose?
Many readers will find this week’s combination surprising. The Middle East is tense, oil jumped 4.00 percent on Thursday to $113.17 a barrel — and yet gold, the classic “safe haven” people rush to, went down. Why?
The main reason reported this week is fear about interest rates in the United States. When oil rises sharply, it threatens to push inflation up around the world. If inflation rises, America’s central bank may keep interest rates high for longer — or the market may worry that it will. High interest rates strengthen the dollar and make gold less attractive by comparison, because gold pays no interest or income while you hold it. A bank deposit or a government bill pays a return; a tola of gold simply sits there. So when rate fears rise, some large investors sell gold, and the price dips — even in a tense week.
This is a useful reminder that gold responds to more than one force at a time. Fear pushes it up; high interest rates pull it down. This week, the interest-rate force was stronger.
What This Means for Buyers and Holders
For families in Pakistan, gold is usually bought for weddings and as a store of savings, not for daily trading. A two-day fall of Rs 3,900 per tola matters if you are buying this week, but it is small against the level gold has reached — above Rs 431,000 per tola. Remember too that the APGJSA rate is the bullion rate; a jeweller’s shop price adds making charges and margin.
What to Watch Next
Three things will steer gold from here: the international price per ounce, the dollar-rupee rate — currently near 276.85 in the interbank market — and any shift in expectations about US interest rates. If oil stays high and rate fears grow, gold could remain under pressure despite world tensions. If those fears cool, the safe-haven demand that lifted gold to these levels may return quickly.
Market data: Pakistan Stock Exchange, State Bank of Pakistan and published news reports (figures as of 22 October 2026). Written in our own words for information only — not investment advice.