Gold prices in Pakistan edged higher on Monday, based on FXStreet-compiled data. The metal was priced at PKR 35,945.31 per gram, up from PKR 35,906.22 on Friday, while the tola rate rose to PKR 419,258.50 from PKR 418,803.20. FXStreet also put the price at PKR 359,453.10 for 10 grams and PKR 1,118,025.00 per troy ounce.
The figures are derived by converting international bullion prices into local terms via the USD/PKR rate and standard measurement units, with levels updated daily at publication-time market rates; these quotations are reference points and local pricing can vary. In the wider market context, central banks remain the largest holders, and they added 1,136 tonnes of gold, valued at about $70 billion, to reserves in 2022, according to the World Gold Council. Gold is often described as inversely correlated with the US Dollar and US Treasuries, and its price is typically quoted in XAU/USD.
Record Highs and Global Momentum
We are seeing gold prices in Pakistan climb to new heights today, with the price of a single tola reaching PKR 419,258.50. This upward trend reflects a broader global momentum where the yellow metal remains a preferred shield against currency depreciation and inflation. For derivative traders, this consistent climb signals that the bullish trend is far from over in the coming weeks.
To put this in perspective, local gold prices have surged dramatically from around PKR 240,000 per tola in early 2024 to today’s historic highs. Globally, central banks have fueled this momentum, having purchased over 1,000 metric tonnes of gold annually over the past few years to diversify their reserves. We believe this strong institutional support creates a solid floor for gold, making short-selling highly risky right now.
Strategies for Derivative Traders
In the coming weeks, we recommend that derivative traders focus on buying call options on dips rather than chasing the immediate highs. Leveraging long futures contracts with tight stop-loss orders can also help capture the steady upward momentum while managing downside risk. Given the inverse relationship between gold and the US Dollar, keeping a close eye on upcoming central bank interest rate decisions will be crucial for timing these entries.
