Gold prices in Pakistan fell on Thursday, based on FXStreet-compiled data. Gold was priced at PKR 44,813.80 per gram, down from PKR 44,948.43 on Wednesday.
The price per tola dropped to PKR 522,715.80 from PKR 524,269.60 the day before. Other listed prices were PKR 448,151.10 for 10 grams and PKR 1,393,866.00 per troy ounce.
How Local Gold Prices Are Calculated
FXStreet derives local gold prices by converting international prices using the USD/PKR rate and local units. Prices are updated daily using market rates at the time of publication, and local prices may vary slightly.
Central banks are the largest holders of gold. They added 1,136 tonnes worth about $70 billion in 2022, the highest annual total since records began, according to the World Gold Council.
Gold often moves inversely to the US Dollar and US Treasuries, and it can also move opposite to risk assets such as equities. Price drivers include geopolitical tension, recession fears, interest rates, and changes in the US Dollar, as gold is priced in USD (XAU/USD).
While we see a minor dip in local gold prices, the bigger picture for derivatives is tied to global factors. Gold’s inverse relationship with the US Dollar is critical, and with the Dollar Index (DXY) down nearly 4% since last autumn to around 101.5, we see a supportive floor building for the metal. This presents a key dynamic to watch over the coming weeks.
Interest Rates And Derivatives Outlook
The main driver for gold is interest rate expectations. Looking back, the aggressive rate hikes of 2023 and 2024 are now behind us, and the market is pricing in potential US Federal Reserve cuts later this year. January 2026’s cooler-than-expected inflation reading of 2.8% strengthens this view, which typically boosts non-yielding assets like gold.
We should not ignore the steady demand from central banks, which continues to be a major force. Following the record buying we all saw in 2022, central banks added another massive 1,050 tonnes to their reserves through 2025. This persistent buying from official sources creates a strong underlying bid in the market and can limit downside potential.
Gold’s role as a safe-haven asset is becoming more relevant again. After a strong run through much of last year, equity markets are showing signs of increased volatility with mixed corporate earnings guidance for the coming quarter. This growing uncertainty could lead some traders to increase their exposure to gold derivatives as a hedge.
Finally, ongoing geopolitical tensions and trade frictions provide a constant undercurrent of support for the precious metal. Any escalation in these global hotspots tends to trigger a flight to safety. Therefore, we should view any significant price dips as potential opportunities to position for volatility.
