Gold prices in Pakistan held steady on Tuesday. The price per gram was 35,936.21 Pakistani Rupees, down slightly from 35,961.88 PKR the day before. The price per tola also remained stable, decreasing just a bit from 419,452.20 PKR on Monday to 419,161.40 PKR.
Expectations of interest rate cuts by the US Federal Reserve have weakened the US Dollar, which helped Gold recover a bit from its recent low. Traders expect a 25 basis point rate cut this week and another the following December, based on the CME Group’s FedWatch Tool.
Geopolitical Tensions and Gold’s Appeal
Recent US inflation data showed a 3% year-over-year increase for September. President Donald Trump’s comments about Russian missile tests have raised geopolitical tensions, which may enhance Gold’s appeal as a safe-haven asset.
Discussions between the US and China about trade, along with a potential deal framework, could lead to positive feelings in the stock market. This might cause traders to be cautious in the Gold market before major central bank meetings this week.
FXStreet sets Gold prices in Pakistan using international rates, adjusting for local currency fluctuations. Prices can vary slightly due to market changes.
Gold is often viewed as a safe investment during uncertain times, and central banks hold it to strengthen their economies and currencies. In 2022, central banks bought a record 1,136 tonnes of Gold.
Current Expectations and Trading Strategies
As of October 28, 2025, we see familiar trends where Federal Reserve policy expectations create tension for Gold. The September 2025 CPI report showed core inflation stubbornly at 3.2%, which keeps the Fed cautious about announcing any clear rate cuts. This situation is different from 2019, when the market expected several cuts confidently.
The CME FedWatch Tool now shows a 45% chance of a rate cut by the second quarter of 2026, up from 20% just a month ago. This rising expectation that the rate hike cycle is coming to an end supports prices for Gold. Traders should monitor changes in these probabilities as clues for Gold’s next move.
For derivative traders, implied volatility may increase before upcoming FOMC statements. The tension between a possibly hawkish Fed in the short run and a dovish shift next year makes long-dated call options an intriguing choice for positioning future easing. Shorter-term traders might consider straddles to take advantage of volatility around important economic data releases.
Geopolitical factors continue to support Gold, similar to past US-Russia tensions. While specific conflicts have changed since Trump, ongoing global instability and the trend toward de-dollarization persist in driving safe-haven demand. The World Gold Council reported that central banks added another 250 tonnes to reserves in Q3 2025, providing solid support for the market.
Given this context, a strategy of buying on dips rather than chasing rallies is suggested, as a strong US Dollar may limit significant price increases in the weeks ahead. Selling cash-secured puts below key technical support levels, like the 200-day moving average, could be a good strategy to purchase Gold at a lower price or earn premium income. The inverse relationship with the US Dollar remains the key factor to track daily.
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