Gold prices in Pakistan fell on Thursday, according to data compiled by FXStreet. Gold was priced at PKR 44,813.80 per gram, down from PKR 44,948.43 on Wednesday.
The price per tola fell to PKR 522,715.80 from PKR 524,269.60 the previous day. Other listed prices were PKR 448,151.10 for 10 grams and PKR 1,393,866.00 per troy ounce.
How Local Gold Prices Are Calculated
FXStreet calculates local gold prices by converting international prices using the USD/PKR exchange rate and local units. Prices are updated daily using market rates at the time of publication, so local prices may vary slightly.
Central banks hold more gold than any other group. According to the World Gold Council, they added 1,136 tonnes (worth about $70 billion) in 2022. This was the largest yearly total since records began.
Gold often moves in the opposite direction of the US Dollar and US Treasuries. It can also move against risk assets like stocks. Key drivers include geopolitical tension, recession concerns, interest rates, and shifts in the US Dollar, since gold is priced in USD (XAU/USD).
Local prices are only slightly lower, but the bigger story for derivatives depends on global forces. Gold’s inverse link with the US Dollar matters most. With the Dollar Index (DXY) down nearly 4% since last autumn to around 101.5, gold has a stronger base of support. This is an important trend to watch in the weeks ahead.
Interest Rates And Derivatives Outlook
Interest rate expectations are the main driver of gold. The sharp rate hikes of 2023 and 2024 are now in the past. Markets are pricing in possible US Federal Reserve rate cuts later this year. The cooler-than-expected January 2026 inflation reading of 2.8% supports that view, and it often helps non-yielding assets like gold.
Steady demand from central banks also matters. After record buying in 2022, central banks added another 1,050 tonnes to reserves through 2025. This ongoing official buying helps support prices and can limit how far gold falls.
Gold’s safe-haven role is becoming important again. After a strong run for much of last year, stock markets are showing more volatility, and company guidance for the next quarter is mixed. This uncertainty may lead some traders to add gold derivatives as a hedge.
Geopolitical tensions and trade disputes also continue to support gold. When these risks rise, investors often move to safer assets. Because of this, sharp price drops may offer chances to position for higher volatility.
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