Gold prices in Pakistan dropped on Thursday, according to FXStreet. The price per gram decreased from 38,213.13 PKR to 38,131.00 PKR. The price per tola also fell from 445,710.50 PKR to 444,752.50 PKR. FXStreet adjusts international gold prices (USD/PKR) for the local market, updating daily based on current rates. Local prices may differ slightly from these reported rates.

Historical Value And Market Trends of Gold

Gold is valued for its long-standing role as a safe investment and means of exchange. It is seen as a safe-haven asset and protection against inflation and currency drops. Central banks play a big role as buyers of gold. In 2022, they added a record 1,136 tonnes, worth about $70 billion. This was the highest annual purchase ever, with countries like China, India, and Turkey boosting their reserves. Gold prices usually move opposite to the US Dollar and US Treasuries. When the Dollar weakens, gold prices rise; when the Dollar strengthens, gold prices fall. Prices can also change due to global uncertainty, recession fears, and interest rate shifts. Lower interest rates benefit gold, while higher rates tend to lower its value. Recently, the local gold price in Pakistan dipped slightly. This small drop appears to be a minor change compared to the larger global and local factors that affect precious metals. For traders, this might be a short-term opportunity rather than a sign of a trend change.

Gold Price Outlook and Trading Strategy

The global situation remains very supportive for gold as we enter December 2025. Central banks are still buying heavily, adding more than 800 tonnes worldwide in the first three quarters of this year. This trend continues the record pace set in 2022 and 2023, providing strong support for prices. Also, the outlook on U.S. interest rates is favorable for gold. After significant rate increases in 2023-2024, the Federal Reserve is expected to start cutting rates in the first half of 2026, with predictions pointing to a cut by March. Gold, which doesn’t earn interest, becomes more appealing when rates are likely to drop. In Pakistan, the focus is on currency and inflation. The Pakistani Rupee has been under pressure against the US Dollar in 2025, and the State Bank of Pakistan’s November report highlighted ongoing inflation concerns. In this context, gold serves as a key hedge against the local currency’s depreciation for Pakistani investors. Considering these factors, the negative correlation between gold and the US Dollar is crucial for our strategy. As the Dollar is expected to weaken due to upcoming rate cuts, international gold prices should rise. This effect will likely be intensified for Pakistani traders if the PKR weakens further, which would significantly increase local gold prices. Therefore, we should view this small price decrease as a chance to establish long positions. Traders could consider buying gold futures or call options expiring in the next few months. This strategy allows us to benefit from the anticipated rise in global gold prices and the continued decline of the local currency. Create your live VT Markets account and start trading now.

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