Gold prices in Pakistan rose on Thursday, based on FXStreet data. Gold was priced at PKR 46,482.28 per gram, up from PKR 46,100.03 on Wednesday.
Per tola, gold increased to PKR 542,159.10 from PKR 537,701.70 a day earlier. Other listed rates were PKR 464,821.90 for 10 grams and PKR 1,445,762.00 per troy ounce.
Gold Pricing Method
FXStreet calculates local gold prices by converting international prices using the USD/PKR exchange rate and local measurement units. The figures are updated daily using market rates at the time of publication, and local prices may differ slightly.
Gold is used as a store of value and for jewellery, and is also used for diversification during market stress. It is also used as a hedge against inflation and weaker currencies.
Central banks hold large gold reserves and added 1,136 tonnes worth about $70 billion in 2022, according to the World Gold Council. This was the highest annual total since records began.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move against risk assets. Prices can also react to geopolitics, recession fears, and interest rates, as gold has no yield.
Market Outlook
Given today’s date, we see gold’s fundamental drivers pointing towards continued volatility and potential upside in the coming weeks. The recent pivot in Federal Reserve commentary, hinting at future rate cuts after US Q4 2025 GDP growth came in at a modest 1.8%, creates uncertainty. This environment suggests traders should consider strategies that benefit from sharp price moves, such as purchasing straddles on major gold ETFs.
The role of gold as a hedge against depreciating currencies remains a powerful force, particularly in emerging markets. Looking back at 2025, we saw countries like Pakistan grapple with inflation that averaged over 20%, driving strong local demand for the metal as a store of value. This underlying demand supports a bullish case, making long-dated call options an interesting way to speculate on this continuing trend.
We also see strong foundational support from institutional buyers. Central banks continued their historic purchasing spree through 2025, adding over 950 tonnes to global reserves, the second-highest annual total on record. This consistent demand, led by nations diversifying away from the dollar, suggests that price dips will likely be short-lived, making the selling of cash-secured puts on gold miners or related ETFs a viable income-generating strategy.
Geopolitical instability is another key factor providing a floor for gold prices. With ongoing trade frictions and regional conflicts creating a nervous market backdrop, gold’s safe-haven status is highly relevant. For traders, buying out-of-the-money call options can serve as a low-cost insurance policy against any sudden flare-up in global tensions.
Finally, we must consider gold’s inverse relationship with the US Dollar. As the market begins to price in a more dovish Fed policy for later this year, the Dollar Index (DXY) has already fallen 3% from its late 2025 highs, providing a direct tailwind for gold. Continued dollar weakness could justify building bullish positions through futures contracts or by using bull call spreads to limit risk.
