Gold prices in Pakistan dropped on Thursday, according to FXStreet data. The price for one gram fell to 38,035.42 Pakistani Rupees (PKR), down from 38,211.35 PKR the day before. The cost for one tola also decreased, now at 443,639.80 PKR, down from 445,689.70 PKR. The price for 10 grams is 380,350.10 PKR, while one troy ounce costs 1,183,071.00 PKR.

Calculation Of Local Prices

FXStreet uses the USD/PKR exchange rate to update local gold prices daily based on international prices. Gold is important not just for jewelry. It serves as a safe place to store value and is also used for trading. In uncertain times, gold acts as a safe-haven asset and protects against inflation and currency loss. Central banks, particularly in emerging markets like China, India, and Turkey, are the biggest buyers of gold, adding 1,136 tonnes in 2022. Gold prices move in the opposite direction of the US Dollar and other safe-haven assets. Geopolitical tensions and recession fears can push gold prices up because of its secure status, which is affected by changes in interest rates and the Dollar’s strength.

Market Conditions

Gold prices are experiencing a slight drop, likely due to a weaker US Dollar. The Dollar Index (DXY) recently dipped below 103, a level we haven’t consistently seen since the third quarter of this year. This trend suggests the current softness in gold may be a chance to buy rather than a shift in the market. There are growing expectations that the Federal Reserve will hint at a rate cut for early 2026, especially after the recent Q3 2025 GDP growth figures came in lower than expected. As a non-yielding asset, gold looks more appealing when bond yields fall, with the 10-year Treasury yield around 3.9%. This environment should benefit gold as we move into the new year. Central bank purchasing has also remained strong throughout 2025. Emerging market central banks have added over 850 tonnes to their reserves so far this year, continuing the record-setting trend from 2022. This steady demand from central banks keeps a strong foundation under the market, reducing risks. In the coming weeks, we should look at strategies that could benefit from price increases. Buying call options that expire in February and March 2026 may position us well for a price rise caused by changing interest rate expectations. With moderate implied volatility, bull call spreads could also offer a cost-effective way to gain bullish exposure. However, we need to keep an eye on inflation data, which remained at 3.1% last month. If inflation is higher than expected, it might cause the Federal Reserve to delay rate cuts, strengthening the dollar and putting pressure on gold. Therefore, holding some protective put options could be a wise move against any sudden shifts in monetary policy. Create your live VT Markets account and start trading now.

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