Gold prices in Pakistan fell on Thursday. The price per gram decreased from 36,790.27 to 36,753.40 Pakistani Rupees. The price per tola also dropped from PKR 429,114.50 to PKR 428,689.30.

International Factors Impacting Prices

Several international factors are influencing these price changes. Easing tensions between Israel and Hamas due to a new peace agreement have contributed to the decline. Additionally, minutes from the Federal Reserve’s September meeting suggested possible interest rate cuts, which could impact gold’s attractiveness as a safe investment, especially with ongoing concerns about a potential US government shutdown. Geopolitical tensions remain high, particularly as Russia has threatened action if the US supplies cruise missiles to Ukraine, affecting gold price stability. Traders are closely watching comments from the Fed Chair, as these could impact the US Dollar and influence the XAU/USD exchange rate. Gold is traditionally seen as a safe-haven asset, heavily sought after by central banks. In 2022, central banks bought 1,136 tonnes of gold. The price of gold is tied to various factors, including geopolitical unrest and changes in interest rates, reflecting its inverse relationship with the US Dollar. FXStreet calculates gold prices in Pakistan using international rates, adjusted for the local currency and measurement. It’s important to note that these prices are indicative and can vary locally.

Market Trends and Strategies

We view the recent decline in gold prices as a temporary profit-taking moment rather than a shift in the overall trend. The ongoing US government shutdown combined with expectations of Federal Reserve rate cuts provides a strong support level for gold. Traders in derivatives should consider this price dip as a potential opportunity to establish bullish positions in the coming weeks. The CME FedWatch tool indicates a 93% chance of a rate cut this month, creating a favorable environment for non-yielding assets like gold. Recent data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) for September 2025 remained above the Fed’s target at 3.5%, highlighting gold’s function as a hedge against inflation. Call options on gold futures could be an attractive way to benefit from the anticipated price increase driven by lower borrowing costs. The ongoing government shutdown, now in its ninth day, is negatively affecting the US Dollar and increasing economic uncertainty. Initial weekly jobless claims rose by 15,000, primarily due to the furlough of federal contract workers. This economic softness supports long positions in gold because a weaker dollar makes gold cheaper for investors holding other currencies. A similar trend occurred during the 2013 government shutdown, where gold initially decreased but later rose over 5% in the following month as uncertainty increased. Moreover, data from the World Gold Council for Q3 2025 confirmed that central bank purchases remain strong, providing consistent institutional demand. These elements suggest that selling put options below the current market price might be a good strategy to earn premiums while waiting for prices to trend upward. Create your live VT Markets account and start trading now.

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