Insights 
VT 
Gold prices decreased in Pakistan on Friday. A gram of Gold was priced at 36,249.68 Pakistani Rupees, down from the previous day’s 36,416.39 Rupees.
The cost per tola dropped to PKR 422,812.00 from PKR 424,753.70. FXStreet calculates Gold prices by adapting international prices to the local currency.
Influence Of US Dollar And Ceasefire
The US Dollar’s recent rise has influenced Gold prices. Additionally, a ceasefire between Israel and Hamas affected the market, alongside lingering inflation concerns discussed by Federal Reserve Chair Jerome Powell.
A potential decrease in US borrowing costs and ongoing geopolitical issues also impact the market. Moreover, conflicts in Ukraine and government shutdowns further complicate the trading environment.
Geopolitical tensions support Gold’s status as a safe-haven asset. Central banks remain the largest holders, adding significant amounts to reserves.
Gold’s price often moves inversely with the US Dollar and US Treasuries. It is seen as a hedge against inflation and tends to rise when interest rates drop.
People invest in Gold as it is considered stable, with its value depending on multiple factors, including geopolitical instability and currency strength.
Profit Opportunities Amidst Volatility
Gold has pulled back from recent highs, mainly because the US Dollar has shown strength. We see this as profit-taking rather than a change in the trend, creating a tense setup for the coming weeks. This dip could present an opportunity, as several underlying factors remain highly supportive for the precious metal.
The market is heavily focused on the Federal Reserve, with widespread expectation for two more interest rate cuts by the end of 2025. Recent economic data supports this view, as the September jobs report released last week showed hiring has slowed and the unemployment rate has ticked up to 4.1%. This cooling labor market strengthens the case for the Fed to lower borrowing costs, which is typically very bullish for gold.
Geopolitical risks are pulling the market in two directions, creating uncertainty. The ceasefire agreement between Israel and Hamas has eased some immediate safe-haven demand, but the ongoing US government shutdown and escalating Russian attacks on Ukraine are keeping a floor under the price. We believe these conflicting headlines will lead to choppy price action and heightened volatility.
Given this backdrop of uncertainty, we think options strategies that profit from price swings could be effective. Traders might consider buying straddles or strangles to capitalize on a significant move, whether it’s up or down. This approach avoids having to predict the direction of the next breakout caused by a news headline.
For those with a more bullish long-term view, this current weakness looks like a chance to build positions. We remember how gold rallied strongly in late 2023 when the market began anticipating the rate cuts of 2024, and a similar dynamic appears to be forming now. Buying call options with expirations in December 2025 or January 2026 could be a way to position for a year-end rally driven by Fed policy.
