Insights 
VT 
Gold prices in Pakistan decreased on Thursday, with the price per gram falling to 36,753.40 Pakistani Rupees from 36,790.27. Similarly, the price per tola dropped to PKR 428,689.30 from PKR 429,114.50.
Influence Of International Factors
International factors influence these price changes, including easing geopolitical tensions following Israel and Hamas’ agreement on a peace plan. The Federal Reserve’s September meeting minutes hinted at potential interest rate cuts, affecting gold’s safe-haven appeal, particularly as US shutdown concerns remain.
Geopolitical tensions persist, with Russia warning of potential actions if the US supplies cruise missiles to Ukraine, impacting gold’s price stability. Traders are also anticipating cues from the Fed Chair’s remarks, as they may affect the US Dollar and provide direction for the XAU/USD pair.
Gold is traditionally viewed as a safe-haven asset, and central banks play a dominant role in its acquisition. In 2022, central banks purchased 1,136 tonnes of gold. The price of gold is linked to various elements, such as geopolitical instability and interest rate shifts, underscored by its inverse relation with the US Dollar.
FXStreet calculates Pakistani gold prices using international rates, adjusted to the local currency and measurement. It emphasises that prices are indicative and may vary locally.
Market Trends And Strategies
We see the recent dip in gold as a temporary profit-taking event rather than a change in the underlying trend. The combination of an extended US government shutdown and strong expectations for Federal Reserve rate cuts creates a solid floor for the metal. Derivative traders should view this price weakness as a potential entry point for bullish positions in the coming weeks.
With the CME FedWatch tool pricing in a 93% probability of a rate cut this month, the environment is highly favorable for a non-yielding asset like gold. Recent data from the Bureau of Labor Statistics showed the September 2025 CPI holding stubbornly above the Fed’s target at 3.5%, reinforcing gold’s role as an inflation hedge. Call options on gold futures look increasingly attractive as a way to capitalize on the expected upward move driven by lower borrowing costs.
The government shutdown, now in its ninth day, is actively weighing on the US Dollar and increasing economic uncertainty. Initial weekly jobless claims just saw an uptick of 15,000, which many analysts are attributing to the furloughing of federal contract workers. This economic weakness supports long gold positions, as a depreciating dollar makes the metal cheaper for holders of other currencies.
We saw a similar pattern during the 2013 government shutdown, where gold initially dipped before rallying over 5% in the following month as economic uncertainty grew. Furthermore, World Gold Council figures for Q3 2025 confirmed that central bank buying remains robust, providing a steady source of institutional demand. These factors suggest that selling put options below the current market price could be a viable strategy to collect premium while waiting for the uptrend to resume.
