Gold prices in Pakistan were unchanged on Friday, based on FXStreet data. Gold was priced at PKR 41,868.55 per gram, the same as Thursday.
Gold was also steady at PKR 488,346.60 per tola, unchanged from a day earlier. Other listed prices were PKR 418,685.50 for 10 grams and PKR 1,302,259.00 per troy ounce.
How FXStreet Calculates Local Gold Prices
FXStreet derives Pakistan gold prices by adjusting international prices using the USD/PKR exchange rate and converting into local units. The figures are updated daily using market rates at the time of publication, and local prices may vary slightly.
Gold is commonly used as a store of value and a medium of exchange, and it is widely used in jewellery. It is also used as a hedge against inflation and currency weakness.
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, with China, India, and Turkey increasing reserves.
Gold often moves inversely to the US Dollar and US Treasuries. Prices can also be affected by geopolitical risk, recession concerns, interest rates, and US Dollar movements.
Key Drivers Investors Are Watching
We see gold’s role as a store of value being tested again, much like it was throughout 2025 with ongoing geopolitical tensions. The focus for us is now shifting toward its safe-haven appeal in the face of a slowing global economy. This stability makes it a critical asset to watch in the coming weeks.
Central bank demand continues to provide a strong floor for the price. Following the record purchases seen earlier in the decade, official sector buying remained exceptionally strong through 2025, with World Gold Council data showing central banks added a net 1,080 tonnes to reserves. We expect emerging markets to continue this diversification strategy.
The most critical factor for us now is the outlook on interest rates. After the series of hikes in 2024 and 2025 to combat inflation, recent economic data shows US inflation has finally cooled to 2.8%, leading many to anticipate a Federal Reserve rate cut later this year. Gold, as a non-yielding asset, becomes more attractive in a lower-rate environment.
This has a direct inverse correlation with the US Dollar, which we are monitoring closely. The Dollar Index (DXY) has already softened from its late 2025 peaks as markets begin to price in looser monetary policy. A weaker dollar typically pushes gold prices higher, as it becomes cheaper for holders of other currencies.
For derivative traders, this suggests a bullish outlook could be warranted. We are observing increased volume in call options on gold futures, which allows for capitalizing on potential price increases while defining risk. This indicates that market participants are positioning for upward momentum in the near term.
