Insights 
VT 
Gold prices in Pakistan experienced an increase on Monday. The price per gram moved to 38,917.76 Pakistani Rupees (PKR) from 38,779.00 PKR on Friday.
The price for Gold per tola rose to PKR 453,929.20 from PKR 452,310.70 last Friday. The rates for Gold in various units include 1,210,479.00 PKR per troy ounce and 389,160.30 PKR for 10 grams.
Fxstreet Adjusts Gold Prices
FXStreet adjusts Gold prices in Pakistan by converting international market prices into local currency, updating them daily. Though mainly for reference, these prices may slightly diverge from local market rates.
Gold holds tremendous historical importance as a store of value and medium of exchange. Today, it is known for its role as a safe-haven asset during unstable times and as a hedge against inflation and currency depreciation.
Central banks are major holders, purchasing 1,136 tonnes in 2022, reflecting longstanding demand. Gold’s inverse correlation with the US Dollar and US Treasuries is noted, often rising when the Dollar falls.
Geopolitical tensions or recession fears can drive Gold prices up due to its appeal as a safe haven. Gold typically benefits from lower interest rates, which decreases the borrowing cost, but higher rates might negatively impact its value.
Gold’s Role As A Safe Haven
Gold’s role as a safe-haven asset is becoming critical again. We are seeing renewed geopolitical tensions in the South China Sea, which is pushing investors away from riskier assets like equities. This environment makes holding gold attractive during turbulent times.
Central banks are continuing the major buying trend we saw peak back in 2022. Recent World Gold Council data shows global central banks added another 855 tonnes in the first three quarters of 2025, with a focus on diversifying away from the US Dollar. This provides a strong underlying support for gold prices.
The US Federal Reserve’s recent dovish tone is a key factor for traders. With the Fed signaling a potential interest rate cut in early 2026 due to slowing GDP growth, holding a non-yielding asset like gold becomes more appealing. We have seen US 10-year Treasury yields slip to 3.7%, reducing the opportunity cost of holding gold.
This shift in Fed policy has caused the US Dollar to weaken. The Dollar Index (DXY) is currently trading near 101.2, a significant drop from its 2024 average, which is historically a powerful tailwind for gold. As gold is priced in dollars, a cheaper dollar makes it more affordable for foreign buyers.
For the coming weeks, derivative traders should consider positioning for further upside. Buying call options with strike prices aiming for the $2,500 per ounce level for a December 2025 expiry could capture this upward momentum. Implied volatility has ticked up slightly, suggesting the market is expecting bigger price swings, which traders must factor into their strategies.
