Gold prices rose in Pakistan on Monday, based on FXStreet-compiled data. Gold was priced at PKR 46,138.03 per gram, up from PKR 45,568.61 on Friday.
Per tola, gold increased to PKR 538,144.90 from PKR 531,503.40 on Friday. Listed prices were PKR 461,380.30 for 10 grams and PKR 1,435,053.00 per troy ounce.
Pakistan Gold Pricing Method
FXStreet calculates Pakistan gold prices by converting global gold rates into PKR using the USD/PKR exchange rate and local weight units. Prices are updated daily using market rates at the time of publication, but local prices may differ slightly.
Central banks hold more gold than any other group. They often use it to diversify their reserves. According to the World Gold Council, they bought 1,136 tonnes of gold worth about $70 billion in 2022. That was the highest annual total since records began.
Gold is often said to move in the opposite direction of the US Dollar and US Treasury yields. It can also move opposite to risk assets. Key drivers include geopolitical tension, recession worries, interest rates, and the strength of the US Dollar, since gold is priced in dollars (XAU/USD).
Gold’s safe-haven role is important in today’s market. Central banks are still buying heavily. Official sector purchases topped 1,000 tonnes again in 2025, showing a clear push to diversify away from the dollar. This steady institutional demand is helping to support prices.
Interest Rate Outlook
In the weeks ahead, the main focus is interest rates. With the Federal Reserve keeping rates steady around 3.75%, traders now expect at least two more cuts before year-end. Gold does not pay interest, so it becomes more attractive when the cost of holding it falls.
These rate-cut expectations are also weighing on the US Dollar. A weaker dollar often lifts gold prices. The dollar index (DXY) has already eased from its 2025 highs. This currency trend is supporting the wider precious metals market.
Because the timing of the next rate cut is unclear, we expect volatility to rise. Derivatives traders may consider call options or call spreads to position for a potential move above recent resistance. These trades can capture upside while limiting risk if prices stay range-bound.
We also remember the sharp rate hikes that started in 2022 to fight high inflation. Gold held up well then, but the market focus has changed. Now, investors are watching when and how fast central banks will start easing.
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