Gold prices in Pakistan decreased on Tuesday, as reported by FXStreet. The price per gram fell to 38,640.14 Pakistani Rupees (PKR) from the previous day’s 38,773.82 PKR.
The cost of Gold per tola decreased to PKR 450,691.00, compared to 452,250.20 PKR a day earlier. The price for 10 grams was PKR 386,401.40. A Troy Ounce of Gold traded at 1,201,846.00 PKR.
Daily Gold Price Updates
FXStreet updates these prices daily by converting international prices (USD/PKR) to local terms. These are for reference, and local rates could vary slightly.
Gold is considered a store of value and a medium of exchange, often used during unstable times as a safe-haven asset. It acts as a hedge against inflation and currency depreciation.
Central banks hold large Gold reserves to bolster their economies. In 2022, central banks bought 1,136 tonnes of Gold, valued at around $70 billion—the most annual purchases recorded. This includes significant purchases by banks in China, India, and Turkey.
Gold usually moves inversely with the US Dollar and is affected by geopolitical instability, interest rates, and the Dollar’s strength. Lower interest rates often cause Gold prices to rise, while a strong Dollar can suppress them.
Gold’s Inverse Relationship With The US Dollar
The slight dip in the local gold price to PKR 450,691 per tola that we see today, December 16, 2025, should be viewed against a much larger global picture. While local currency fluctuations can cause daily noise, the real driver for gold remains its inverse relationship with the US Dollar. We should focus on the broader trend rather than short-term movements in a single currency market.
The key factor for us is the outlook for U.S. interest rates. With the latest U.S. inflation data for November 2025 coming in at a persistent 3.2%, the Federal Reserve is under pressure to consider easing its policy in the coming year. The market is now pricing in at least two rate cuts in 2026, which is historically bullish for a non-yielding asset like gold.
This expectation of lower rates is already putting pressure on the US Dollar, which has weakened nearly 3% against a basket of major currencies over the past quarter. Since gold is priced in dollars, a weaker greenback makes the metal cheaper for holders of other currencies, which tends to boost demand. For derivative traders, this backdrop makes long positions in gold futures increasingly compelling.
We also see continued, powerful support from institutional buyers. Following the record-breaking purchases in 2022 and 2023, central banks have continued to add to their reserves, acquiring over 800 tonnes so far in 2025. This consistent demand from emerging economies provides a strong floor for the gold price, limiting potential downside.
Geopolitical friction and ongoing economic uncertainty also reinforce gold’s role as a safe-haven asset. For traders in Pakistan specifically, gold continues to be a primary hedge against the depreciation of the rupee, which has lost another 7% against the dollar year-to-date. This makes holding gold, or gold derivatives, a defensive strategy against local currency weakness.
Given these factors, the minor price drop today appears to be a consolidation phase rather than a change in trend. We should consider this an opportunity to build positions for the coming months. Bullish strategies, such as buying call options on February or April 2026 gold futures contracts, could be an effective way to capitalize on the expected price rise driven by monetary policy shifts.
