Gold prices in Pakistan rose on Monday, based on FXStreet data. The metal was quoted at PKR 37,347.43 per gram, up from PKR 37,165.43 on Friday, while the per-tola rate moved to PKR 435,613.20 from PKR 433,490.30. Other reference levels put 10 grams at PKR 373,474.70 and a troy ounce at PKR 1,161,636.00.
FXStreet derives local gold prices by converting international market levels through the USD/PKR rate and applying Pakistani measurement units, with daily updates taken at the time of publication; quoted prices are indicative and can differ from local market rates. Separately, World Gold Council data show central banks added 1,136 tonnes of gold worth around $70 billion in 2022, described as the highest annual purchase since records began; the broader backdrop cited includes gold’s inverse correlation with the US Dollar and US Treasuries, and its pricing convention against the Dollar in XAU/USD.
Global Drivers Of Rising Gold Prices
We see the recent increase in local gold prices as a reflection of a larger global trend. This movement signals underlying strength in the precious metals market, which we believe is more than just short-term noise. Derivative traders should be preparing for sustained upward pressure in the coming weeks.
A primary driver is persistent global inflation, which the IMF recently reported at 4.1% for May 2026, well above the targets of most central banks. This environment continues to fuel demand for gold as a proven hedge against depreciating currencies. We expect this fundamental support to provide a solid price floor through the third quarter.
The heavy purchasing from central banks also underpins our outlook. Following the record buys of the early 2020s, official sector demand has remained strong, with central banks adding another 290 tonnes in the first quarter of 2026. This consistent buying reduces the public float and supports a structurally higher price.
Market Strategy And Safe Haven Demand
Most importantly, we are watching the U.S. Federal Reserve’s recent change in tone. After holding rates steady, market consensus is now pricing in a rate cut by the fourth quarter, which is beginning to weigh on the U.S. Dollar. This developing weakness in the dollar creates a classic bullish setup for gold.
In this environment, we are using derivatives to gain upside exposure while managing risk. Long-dated call options on XAU/USD futures appear particularly attractive for capturing a potential breakout. We advise building positions gradually ahead of the next major central bank announcements.
Finally, rising uncertainty in equity markets is increasing gold’s appeal as a safe-haven asset. The VIX has recently climbed above 25, a level indicating significant investor anxiety. This flight to safety provides yet another tailwind for the precious metal.
