Gold prices in Pakistan rose on Friday, according to FXStreet data. The price per gram increased from 38,324.56 PKR on Thursday to 38,377.77 PKR. The cost per tola went up from 447,010.20 PKR to 447,624.40 PKR. Prices for gold in local currency follow international rates (USD/PKR), which are updated daily based on market conditions. These prices are for reference only and local rates may vary slightly.

Gold as a Safe Haven

Gold has long been seen as a way to preserve wealth and protect against inflation. It is often viewed as a safe-haven asset during uncertain times because it remains stable and is not tied to any specific issuer or government. Central banks are the largest holders of gold, diversifying their reserves to boost their economies. In 2022, they bought 1,136 tonnes of gold, worth about $70 billion, marking a record high for purchases. Gold prices usually move in opposition to the US Dollar and US Treasuries. Factors like geopolitical instability, interest rates, and the strength of currencies can also affect gold prices. Generally, a stronger Dollar keeps gold prices lower, while a weaker Dollar tends to increase them. Today’s rise in gold price, now PKR 38,377.77 per gram, highlights an overall trend we’re closely monitoring. This small increase is part of a larger accumulation pattern seen over the past few months. Traders should consider this not just as a single event but as a possible indicator of future movements.

Global Economic Conditions

Global economic conditions remain shaky, with ongoing trade disputes and slowing growth expectations for early 2026 causing market concerns. During times like these, gold strengthens its position as a go-to safe-haven asset. Historically, we have seen more investments in gold during periods of heightened instability. Central banks continue to be significant buyers of gold, a trend that has grown since the record-high purchases in 2022. Recent data for the third quarter of 2025 shows that central banks, especially in Asia, added another 350 tonnes to their reserves. This ongoing demand from institutions helps create a solid base for gold prices. The US Federal Reserve may pause its interest rate hikes, putting downward pressure on the US Dollar. The US Dollar Index (DXY) has dropped to around 101.5, lower than earlier this year. A weaker dollar typically makes gold less expensive for foreign buyers, increasing its attractiveness. We saw a similar situation during the economic uncertainty of the early 2020s before a major rally in precious metals. That time showed how a mix of loose monetary policy and global risks can push gold prices higher. Today’s environment resembles that period. For derivative traders, this situation suggests looking into long positions on gold in the coming weeks. Increased market volatility may make buying call options an effective way to gain exposure while keeping risk low. Selling out-of-the-money put spreads could also be a good strategy to earn premium if we expect prices to stay stable or rise. Create your live VT Markets account and start trading now.

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