Gold prices in Pakistan rose on Thursday, according to FXStreet data. Gold was priced at PKR 46,482.28 per gram, up from PKR 46,100.03 on Wednesday.
Per tola, gold climbed to PKR 542,159.10 from PKR 537,701.70 the day before. Other listed rates were PKR 464,821.90 for 10 grams and PKR 1,445,762.00 per troy ounce.
Gold Pricing Method
FXStreet estimates local gold prices by converting global prices using the USD/PKR exchange rate and local units of measure. The numbers are updated daily using market rates at the time of publication. Local prices may vary slightly.
Gold is used as a store of value and for jewellery. Many investors also use it to diversify during market stress. It can also help protect against inflation and weaker currencies.
Central banks hold large gold reserves. In 2022, they added 1,136 tonnes, worth about $70 billion, according to the World Gold Council. This was the biggest annual increase since records began.
Gold often moves in the opposite direction to the US Dollar and US Treasuries. It can also move differently from risk assets. Prices may react to geopolitics, recession worries, and interest rates, since gold does not pay interest.
Market Outlook
Based on today’s date, gold’s key drivers suggest ongoing volatility, with room for gains in the weeks ahead. Recent changes in Federal Reserve messaging have raised the odds of future rate cuts after US Q4 2025 GDP growth came in at a modest 1.8%. This adds uncertainty. In such conditions, traders may look at strategies that can benefit from large moves, such as buying straddles on major gold ETFs.
Gold’s role as a hedge against weaker currencies remains important, especially in emerging markets. In 2025, countries such as Pakistan dealt with inflation averaging above 20%. That helped boost local demand for gold as a store of value. This support can strengthen the bullish case and makes long-dated call options one way to position for the trend.
Institutional demand also gives gold a strong base. Central banks kept buying through 2025, adding more than 950 tonnes to global reserves, the second-highest yearly total on record. This steady buying, driven by efforts to diversify away from the dollar, suggests pullbacks may not last long. For income-focused traders, selling cash-secured puts on gold miners or related ETFs is one possible strategy.
Geopolitical risk is another factor that can support prices. Ongoing trade tensions and regional conflicts can keep investors cautious, which helps gold’s safe-haven appeal. Traders may use out-of-the-money call options as a lower-cost way to hedge against a sudden rise in global tensions.
Gold’s inverse link to the US Dollar also matters. As markets price in a more dovish Fed later this year, the Dollar Index (DXY) has already dropped 3% from its late-2025 highs, which supports gold. If the dollar keeps weakening, traders may build bullish exposure through futures or by using bull call spreads to cap risk.
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