This page does not show a live gold price. It explains how the rate you see each day is put together, so you can read any quote with more confidence. For today's rate, check the rate published by your local sarafa association or ask a jeweller you trust. Compare it with the international price and the current USD/PKR rate.
The short answer: three parts
When people ask how the gold price is decided in Pakistan, the answer has three parts:
- The international gold price. Gold is traded worldwide in US dollars per troy ounce. On trading platforms this price appears as XAUUSD, meaning gold priced in US dollars.
- The USD/PKR exchange rate. The dollar price is converted into rupees. If the rupee weakens, the local gold rate rises even when the world price stays flat.
- The local premium or discount. This is the gap between the converted international price and what buyers actually pay in the local market. It reflects import costs, duties, supply and demand, and the dealers' margin.
As a formula:
Local rate per tola ≈ (international price per troy ounce, converted to tola weight) × USD/PKR + local premium
A tola and a troy ounce are different weights, so a conversion step is needed. The Gold tola calculator does this step, and Tola, masha and ratti explains the units.
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Part one: the international price
The world gold price moves through the trading day, mostly during London and New York market hours. These are the main things that move it:
- US interest rate expectations and the strength of the US dollar
- Inflation data and central bank decisions
- Demand from central banks, jewellery buyers and investment funds
- Periods of market stress, when some investors move money into gold
Pakistani dealers watch this price closely because it is the starting point for the local rate. For more on what drives the metal, see Metals and Fundamental analysis.
Part two: the rupee
Gold is priced in dollars, so the rupee's value against the dollar matters as much as the world price. The State Bank of Pakistan (SBP) publishes reference exchange rates. Our page on SBP exchange rates explains which rates are published and how to read them.
Interest rates affect the rupee as well. The latest SBP decision on our record is: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). Policy rate changes can shift capital flows and the exchange rate, and through them the local gold rate. See SBP rates and economy for background.
Dealers do not always use the official interbank rate. Some use the open-market dollar rate, which can be higher. This is one reason the local premium exists.
Part three: the local premium
The converted international price is rarely the exact price in the bazaar. The difference comes from:
- Import costs and duties. Bringing gold into the country legally has costs, and those costs are added to the price. See Gold and tax for the tax side.
- Supply. When legal imports are limited, local supply tightens and the premium can widen.
- Demand. Wedding seasons and periods of rupee weakness often increase buying.
- Dealer margin. Wholesalers and retailers add their own margin.
The premium can also turn into a discount when local demand is weak and sellers outnumber buyers.
The role of sarafa associations
The "sarafa gold rate" is the rate announced by bullion and jewellers' associations in the main markets. These associations commonly publish a daily rate per tola and per gram-based unit for the highest purity. Lower purities are priced from it.
Keep these points in mind:
- A sarafa rate is a market reference set by traders, not a government-fixed price.
- It is usually updated during the day when the international price or the rupee moves sharply.
- It is the rate for raw gold. Jewellery prices add making charges, and the resale price usually deducts wastage or other amounts. See Making charges and resale.
- Purity changes the price. See gold purity grades.
When you read "gold rate today" in a newspaper or online, check which association or market the figure comes from and at what time it was published.
Why city rates differ
You may see different rates in Karachi, Lahore, Islamabad, Peshawar or Quetta on the same day. Common reasons are:
- Different associations. Each city's sarafa association can announce its own rate.
- Timing. One city may update its rate before another after a move in the world price.
- Local supply and demand. Markets with more stock or fewer buyers may quote slightly lower.
- Transport and security costs for moving gold between cities.
- Rounding and quoting habits. Some markets quote in round figures.
Shops inside the same city can also differ because of their own margins, the purity they sell, and how they price buy-back.
Gold rate vs gold price on a trading screen
The XAUUSD price on a trading platform is the international price in dollars. It is not the price of physical gold in Pakistan. Platforms that offer gold as a CFD (a contract for difference, where you trade on price changes without owning the metal) usually use leverage. Leverage can wipe out money quickly when the price moves against you.
Pakistani regulators have also issued clear statements on offshore platforms:
- On remittances: per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)).
- On residents' purchases: per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947.
- On investor protection: per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse.
Read Law and regulators and Regulation and Safety before you deal with any trading platform.
How to check a quoted rate yourself
- Note the current international gold price in US dollars per troy ounce.
- Note the current USD/PKR rate, both the official and the open-market rate.
- Convert the price to rupees per tola using the Gold tola calculator.
- Compare the result with the sarafa rate. The gap is the local premium or discount.
- For jewellery, add making charges and check the purity mark.
If the gap is unusually large, ask the dealer why before you buy. For the wider picture, see Gold in Pakistan and Gold.
Frequent questions
Who decides the gold rate in Pakistan?
No single authority fixes it. Sarafa associations announce a daily reference rate based on the international price, the rupee and local market conditions.
Why does the gold rate change even when the world price is flat?
Because the rupee's value against the dollar changes, and the local premium can change too.
Does this page show the gold rate today?
No. Check your local sarafa association's published rate or a trusted jeweller, and note the time of the quote.
Why is my jeweller's price higher than the sarafa rate?
Jewellery includes making charges and the shop's margin, and the purity may differ from the reference grade.
Is XAUUSD the same as the Pakistani gold rate?
No. XAUUSD is the international dollar price. The local rate adds currency conversion and the local premium.
Is zakat calculated on the sarafa rate?
Many people use the market rate on the day they calculate. See Zakat on gold for the method.