Gold prices in Pakistan fell sharply on Tuesday, October 20, 2026, with 24-karat gold dropping Rs3,600 per tola to Rs435,436 as the local bullion market tracked a $36 decline in the international market. The cut, announced by the All Pakistan Sarafa Gems and Jewellers Association, ended an unchanged session on Monday, and it came with a rare split: silver prices did not move at all.
Tuesday’s rates at a glance
According to the association’s rates, 24-karat gold fell to Rs435,436 per tola, while the 10-gram rate dropped Rs3,086 to Rs373,316 and 22-karat gold fell Rs2,829 per 10 grams to Rs342,218. In the international market, gold declined $36 to $4,129 per ounce. Silver stood its ground on both sides of the border: Rs6,234 per tola and Rs5,344 per 10 grams in Pakistan, and $57.56 per ounce internationally, all unchanged.
The single-day drop ended a calm start to the week. On Monday, October 19, gold had held unchanged at Rs439,036 per tola while the international price stood at $4,165 per ounce, according to the association’s rates reported by UrduPoint.
The decode: the local cut matches the global slide almost exactly
Here is the part no rate card spells out. The international fall was $36 on $4,165, or 0.86 percent. The local fall was Rs3,600 on Rs439,036, or 0.82 percent. Those two percentages are essentially the same, and that tells you something important: the rupee side of the equation barely moved on Tuesday. Almost the entire local cut came from the international slide alone.
That is how Sarafa pricing works. The association has said domestic rates are set using international prices and the interbank rupee rate against the US dollar. In rough terms, the international price per troy ounce is divided by 31.1035 (the grams in an ounce), multiplied by 11.6638 (the grams in a tola), and then converted at the interbank exchange rate. Rate trackers such as TECHi publish exactly this conversion method, and their direct spot conversions produced slightly lower indicative figures than the association’s rate, a reminder that the published bazaar number also reflects local market practice, not just arithmetic.
Silver refused to follow
The odd detail of Tuesday’s update was silver. While gold fell close to a percent internationally, silver stayed flat both in the global market and in Pakistani bazaars. When two metals usually move in loose tandem and only one moves, the story is specific to gold rather than a broad precious-metals selloff. For jewellery buyers, that distinction matters: the cheaper gold rate is not mirrored in silver items.
The wider context
Tuesday’s slide extends a month-long retreat. Market trackers put the international spot near $4,122 an ounce, roughly 7 percent below its level around September 18, when it traded near $4,424.90, according to TECHi’s spot series. The local rate remains within its recent range, but the direction of the trend is unmistakable.
The slide came even as energy markets ran hot. ARY News reported Brent crude near a five-month high on geopolitical risks, and market watchers it quoted said energy-driven inflation pressure was keeping expectations of further US monetary tightening alive, usually a headwind for gold. Pakistan’s own fuel market moved the other way on the day, with petrol and diesel prices cut on October 20.
What decides tomorrow’s rate
Two inputs will set Wednesday’s Sarafa rate: the international price overnight and the rupee’s direction. If global gold rebounds or the rupee weakens, some of Tuesday’s relief for buyers could evaporate; if both stay calm, the lower level may hold. Our explainer on the State Bank’s reserves position covers the currency backdrop behind the conversion. Local jewellers also note that wedding-season demand can tilt buying patterns, and making charges, which vary from shop to shop, sit on top of the published rate. For ongoing market coverage, see our Business and Economy news section.
