Gold prices rose in Pakistan on Monday, based on FXStreet-compiled data. Gold was priced at PKR 46,138.03 per gram, up from PKR 45,568.61 on Friday.
Per tola, gold increased to PKR 538,144.90 from PKR 531,503.40 on Friday. Listed prices were PKR 461,380.30 for 10 grams and PKR 1,435,053.00 per troy ounce.
Pakistan Gold Pricing Method
FXStreet derives Pakistan gold prices by converting international rates using USD/PKR and local units. Prices are updated daily using market rates at the time of publication, and local rates may vary slightly.
Central banks are the largest holders of gold and may use it to diversify reserves. They added 1,136 tonnes of gold worth around $70 billion in 2022, according to the World Gold Council, the highest annual total since records began.
Gold is often described as moving inversely to the US Dollar and US Treasuries, and also inversely to risk assets. Price drivers cited include geopolitical instability, recession fears, interest rates, and US Dollar strength because gold is priced in dollars (XAU/USD).
Gold’s role as a safe-haven asset is critical in the current climate. We see central banks continuing their strong purchasing trend, with official sector buying exceeding 1,000 tonnes again in 2025, showing a clear desire to diversify away from the dollar. This persistent demand from institutions is creating a solid price floor for the metal.
Interest Rate Outlook
The primary driver for us in the coming weeks is the outlook on interest rates. With the Federal Reserve holding rates steady around 3.75%, traders are now pricing in at least two more cuts before the end of the year. As a non-yielding asset, gold becomes much more attractive when the opportunity cost of holding it falls.
This interest rate expectation is putting sustained pressure on the US Dollar. A weaker dollar typically pushes gold prices higher, and we’ve already seen the dollar index (DXY) drift down from its 2025 highs. This currency dynamic provides a significant tailwind for the entire precious metals complex.
Given the uncertainty around the exact timing of the next rate cut, we anticipate a rise in volatility. Derivative traders could consider buying call options or call spreads to position for a potential breakout in gold prices above recent resistance. This strategy allows for capturing upside while defining risk if the market moves sideways for longer than expected.
We remember the aggressive rate hikes that began back in 2022 to combat surging inflation. While gold performed well then, the market’s focus has shifted entirely from inflation hedging to the timing and pace of monetary easing. The current environment is about anticipating the central banks’ next moves.
