Can Pakistanis trade gold?
Yes, but through the right channel. If you’re new, start with what XAUUSD is: the price of one troy ounce of gold in US dollars.
In Pakistan, the regulated way to trade gold prices is the Pakistan Mercantile Exchange (PMEX), the country’s commodity futures exchange, regulated by the Securities and Exchange Commission of Pakistan (SECP). You access it through an SECP-licensed PMEX broker.
What many Pakistanis see on social media, leveraged XAUUSD trading through offshore forex and CFD apps, is a different matter. The State Bank of Pakistan (SBP) has said residents buying those products is prohibited.
| Route | What you own | Regulated in Pakistan? | Notes |
|---|---|---|---|
| PMEX gold futures via an SECP-licensed broker | Exchange-traded gold contracts | Yes (SECP) | Several contract sizes, some deliverable |
| Physical gold (tola bars, coins, jewellery) | Metal | Dealers vary | Check purity, making charges and buy-back price |
| Offshore forex/CFD apps | Contracts on the gold price | No | SBP says buying these is prohibited; banks told to block payments |
The regulators: SECP and SBP
SECP
The SECP regulates securities and futures markets, including PMEX and its brokers. In recent years it has repeatedly warned the public about unauthorised online trading and investment platforms, including ones that impersonate licensed brokers or show fake dashboards.
SBP and the offshore forex warning
On May 18, 2022, the SBP issued Exchange Policy Department Circular Letter No. 08 of 2022. It said online platforms offering forex trading, margin trading and contracts for difference to Pakistani residents were not regulated by the SBP or the SECP, that buying their products was prohibited, and that residents paying them could face proceedings under the Foreign Exchange Regulation Act, 1947. Banks were told to stop payments to such platforms through any channel.
Many “XAUUSD mentors” in Pakistan route students to offshore apps and ask for deposits through personal bank accounts, wallets or crypto. Beyond the usual scam risk, you may be breaking foreign exchange rules, and you have no local regulator to complain to if withdrawals are blocked.
PMEX gold contracts
PMEX began full trading in 2007 and handled its first physical gold delivery that August. It has listed eight gold contracts:
| Contract | Approximate size | Deliverable? |
|---|---|---|
| 1 ounce | 1 troy ounce | No |
| 100 ounce | 100 troy ounces | No |
| 1 tola | 11.664 g | Yes |
| 50 tola | about 583 g | Check with PMEX |
| 100 tola | about 1.17 kg | Check with PMEX |
| 1 kilogram | 1,000 g | No |
| 100 grams | 100 g | No |
| Minigold | 10 g | Yes |
PMEX trading runs on the MetaTrader 5 platform. Margins are set by the exchange and are far more conservative than the 1:500-plus leverage advertised by offshore apps. Contract details, margins and trading hours change, so always check the current specifications on pmex.com.pk before you trade.
Converting XAUUSD to a tola price
Most Pakistanis think in tola. One tola is about 11.664 grams, or about 0.375 troy ounces.
Worked example (approximate): with XAUUSD at $4,080 on October 22, 2026, one tola is worth about 4,080 × 0.375 = $1,530. At about 277 rupees per dollar (the rate on our data feed on October 18), that’s roughly Rs 423,800 per tola before dealer premiums, making charges and taxes. Your local bazaar rate will differ, sometimes by a lot. Our per-gram and tola conversion guide explains each step.
Remember the rupee moves too. If the rupee weakens, the local gold price can rise even when XAUUSD is flat.
Best gold trading hours in Pakistan (PKT)
Pakistan uses Pakistan Standard Time (UTC+5) all year, with no daylight saving. The UK and US change their clocks, so gold’s key times shift by an hour in PKT twice a year (late March and late October/early November).
| Session | Northern summer | Northern winter | What usually happens |
|---|---|---|---|
| Asian session | 04:00–12:00 | 05:00–13:00 | Quieter, smaller ranges |
| London open | 12:00 | 13:00 | Volatility picks up |
| US data (8:30 New York) | 17:30 | 18:30 | Often the biggest moves |
| London–New York overlap | 17:00–21:00 | 18:00–22:00 | Deepest liquidity |
| Daily break (5 pm New York) | 02:00 | 03:00 | Spreads widen, thin trading |
PMEX’s own session times may differ from global spot hours, so check them on the exchange website. Our market hours tool shows today’s global gold sessions in your local time.
What this means for your day
The busiest gold hours land in the Pakistani afternoon and evening, which suits many people after work. If you have an office job, see how to trade gold with a full-time job.
Position sizing in rupees (hypothetical)
Risk a small, fixed share of your account on each trade: 1% or less is a common rule. On a Rs 300,000 account, 1% is Rs 3,000. If a trade needs a stop $10 away and each ounce moves about Rs 2,770 for every $10 (at 277 rupees per dollar), you can risk only about one ounce. Exchange contract sizes may not let you go that small, which is a good reason to start with the smallest contract available or to practise on a demo first. Our position size calculator does the dollar maths.
If you prefer physical gold
Many Pakistanis prefer to own metal rather than trade contracts. If that’s you, a few basics protect your money:
- Know the purity. 24-carat is the purest; jewellery is often 22 or 21 carat. Ask for the purity in writing.
- Separate the gold price from making charges. Jewellery prices include labour and design costs that you usually don’t get back when you sell.
- Ask about the buy-back rate before you buy, and get a proper receipt.
- Compare with the international price. Use the tola conversion above as a sanity check on how far the local rate is from XAUUSD.
Physical gold has no leverage, so it can’t wipe out more than you paid, but it carries storage and theft risk and costs more to buy and sell than a futures contract.
Red flags in Pakistan
- “Guaranteed” daily or weekly profits, often shown with screenshots.
- Deposits to personal accounts, wallets or crypto addresses instead of a licensed company.
- “Account management” where someone asks for your login.
- Withdrawal fees or “tax” demands before you can take money out.
- Signal groups selling VIP access. Read our signal group red flags first.
Getting started safely
- Learn the basics: what moves gold, lot sizes and risk management.
- Decide whether you want physical gold or exchange-traded PMEX contracts.
- If PMEX, choose a broker and confirm its licence on the SECP and PMEX websites.
- Practise first, then start with the smallest contract and a stop-loss on every trade.
- Keep a trading journal and review it weekly.
Educational content only, not financial advice. Trading gold with leverage carries a high risk of loss. Check current SECP, SBP and PMEX rules before you trade.
Sources and further reading
- State Bank of Pakistan: EPD Circular Letter No. 08 of 2022
- Business Recorder: Illegal offshore FX websites: SBP stops banks from making payments
- Wikipedia: Pakistan Mercantile Exchange (history and gold contract sizes)
- Forex-Bonus: Pakistan forex regulation: SECP, SBP and PMEX explained (summary of SECP warnings)
- Pakistan Mercantile Exchange: pmex.com.pk
- Securities and Exchange Commission of Pakistan: secp.gov.pk
Frequently asked questions
Is gold trading legal in Pakistan?
Yes, through regulated channels. Gold futures trade on the Pakistan Mercantile Exchange (PMEX), which is regulated by the Securities and Exchange Commission of Pakistan (SECP), through SECP-licensed PMEX brokers. Buying physical gold from dealers is also legal.
Can I trade XAUUSD with an offshore forex broker from Pakistan?
That route carries real legal risk. In May 2022 the State Bank of Pakistan said buying forex, margin trading and CFD products from offshore platforms is prohibited for Pakistani residents, told banks to block payments to them, and warned of action under the Foreign Exchange Regulation Act, 1947.
What gold contracts does PMEX offer?
PMEX has listed eight gold contracts in sizes of 1 ounce, 100 ounces, 1 tola, 50 tola, 100 tola, 1 kilogram, 100 grams and a 10-gram ‘Minigold’. Tola gold and Minigold are described as deliverable. Check pmex.com.pk for current specifications, margins and hours.
What is the best time to trade gold in Pakistan?
Pakistan uses PKT (UTC+5) all year. The London open is at 12:00 PKT during the northern summer and 13:00 in winter. Major US data lands at 17:30 PKT in summer and 18:30 in winter, and the London–New York overlap runs roughly 17:00–21:00 (summer) or 18:00–22:00 (winter).
How do I convert the XAUUSD price to a tola price?
One tola is about 11.664 grams, or about 0.375 troy ounces. Multiply the XAUUSD price by 0.375, then by the rupee rate. Local market prices also include dealer premiums and taxes, so they will differ from this raw conversion.
How do I check if a PMEX broker is genuine?
Look up the company on the SECP and PMEX websites and match the exact company name, licence and web address. Be wary of anyone on WhatsApp, Telegram or Instagram who asks you to send money to a personal account.
Sources and further reading
- CME Group — Gold futures overview — Contract specifications and trading hours for COMEX gold
- CFTC — Commitments of Traders — Weekly futures positioning, including gold
- Investor.gov — Stop order — How stop orders work, and their limits in fast markets
External sites are independent of XAUUSD Global. Check dates and data yourself.