Gold Prices Rise in Pakistan; Spain Faces Reserve Dilemma

Gold prices in Pakistan increased on Wednesday, mirroring gains in the international market, with per tola gold rising by Rs800 to Rs462,936.

The price of 10-gram gold accumulated by Rs686 to Rs396,893. The international rate of gold increased by $8 to reach $4,404 per ounce. The price of silver also increased by Rs72 to Rs7,141 per tola. This upward trend follows a decrease on Tuesday, when gold prices in Pakistan dropped by Rs1,000 per tola to Rs462,136, and the international rate declined by $10 to $4,396 per ounce.

The All Pakistan Sarafa Gems and Jewellers Sarafa Association reported these figures. Investors continue to monitor developments in the Middle East amid ongoing tensions. Brent crude oil futures rose above $100 a barrel on Wednesday, breaching that threshold for the first time since July 24. Separately, Spain faces a dilemma regarding its gold reserves deposited at the U.S. Federal Reserve, as other major European central banks have begun repatriating their gold.

The Netherlands publicly announced its repatriation last week, while France and Germany have also taken recent steps in this direction. Italy resists growing public pressure to bring its reserves home. The Bank of Spain acknowledges holding a portion of its gold reserves in the United States, but for confidentiality reasons, it does not disclose the exact proportion.

Spain's total gold reserve stands at around 281 tonnes, worth close to €33 billion at current prices. Most of this is in the Bank of Spain’s vault in Madrid, but an undetermined portion is also held at the Bank for International Settlements in Basel, the Bank of England, and in New York. The decision to repatriate is influenced not only by distrust of U.S. President Donald Trump, but also by the freezing of Russian assets abroad in 2022.

In 2024, India carried out a massive repatriation of gold from the Bank of England, later extending it to reserves held in Basel. Luis Garvía, a professor at the Instituto de Estudios Bursátiles (IEB), stated that bringing gold to Spain would be part of the European Union’s strategic autonomy framework.