Gold prices in Pakistan eased on Wednesday, based on FXStreet data. Spot gold was priced at PKR 35,494.24 per gram, down from PKR 35,812.39 on Tuesday, while the per tola rate fell to PKR 413,997.90 from PKR 417,708.80. FXStreet also put the price at PKR 354,942.40 for 10 grams and PKR 1,103,995.00 per troy ounce.<\/p>\n
The calculations adapt international pricing via the USD\/PKR exchange rate into local units and are updated daily at publication time, with the figures described as indicative and subject to local variation. In broader market context, gold is commonly treated as a store of value and a safe-haven asset, as well as a hedge against inflation and currency depreciation. Central banks are identified as the largest holders and, according to the World Gold Council, added 1,136 tonnes worth about $70 billion in 2022, the highest annual total on record; gold also tends to move inversely to the US Dollar and US Treasuries and is priced in dollars as XAU\/USD.<\/p>\n
We view the minor pullback in gold prices as a temporary dip, not a change in the underlying trend. The more significant factor for us is the US Dollar Index (DXY), which has recently weakened, falling to 101.5 in late June. A weaker dollar generally provides a tailwind for gold prices.<\/p>\n
Market focus remains squarely on the US Federal Reserve’s next move, with derivatives markets now pricing in a 65% probability of an interest rate cut before the end of the third quarter. Recent economic data, including a softer-than-expected Non-Farm Payrolls report for May 2026, supports the case for easing policy. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, increasing its appeal.<\/p>\n
Meanwhile, inflation continues to prove sticky, with the latest CPI figures holding at 3.1%, well above the Fed’s target. This persistence, coupled with simmering trade tensions in Southeast Asia, reinforces gold’s role as both an inflation hedge and a safe-haven asset. These conditions support a strategy of buying on any short-term weakness.<\/p>\n
We also note that central banks have continued their strong purchasing trend from previous years. The latest World Gold Council data for Q2 2026 showed that central banks, particularly from emerging economies, added another 250 tonnes to their reserves. This consistent institutional demand creates a solid price floor and limits significant downside risk.<\/p>\n
Given these factors, we see the current price level as an opportunity to build long positions through derivatives. We are favoring buying call options with strike prices targeting a move towards $2,450 per ounce over the next two months. Any break below the key technical support level of $2,280 per ounce would cause us to reassess this bullish outlook.<\/p>\n\n\n\n