Gold prices in Pakistan went down on Tuesday, according to FXStreet. The price per gram dropped to 38,640.14 Pakistani Rupees (PKR) from 38,773.82 PKR the day before. The price per tola decreased to PKR 450,691.00, down from 452,250.20 PKR. For 10 grams, the price is now PKR 386,401.40. A Troy Ounce of Gold traded at 1,201,846.00 PKR.

Daily Gold Price Updates

FXStreet updates these prices each day by converting international prices (USD/PKR) for local use. These figures are for reference, and local rates may vary slightly. Gold is seen as a valuable asset and a way to exchange wealth, especially in uncertain times. It is a safeguard against inflation and currency devaluation. Central banks hold vast amounts of gold to strengthen their economies. In 2022, they acquired 1,136 tonnes of gold, worth about $70 billion—the highest annual amount ever. This included large purchases by banks in China, India, and Turkey. Gold typically moves in the opposite direction of the US Dollar and responds to geopolitical issues, interest rates, and the strength of the Dollar. When interest rates are lower, gold prices tend to rise, while a strong Dollar can push prices down.

Gold’s Inverse Relationship With The US Dollar

Today, December 16, 2025, the local gold price dropped to PKR 450,691 per tola. This change should be viewed in a larger global context. Although local currency changes can create daily fluctuations, the main factor affecting gold is its opposite relationship with the US Dollar. It’s important to focus on broader trends rather than short-term changes in one currency market. The outlook for U.S. interest rates is crucial. Recent data shows that U.S. inflation for November 2025 is still at 3.2%. This puts pressure on the Federal Reserve to consider lowering interest rates next year. Markets are anticipating at least two rate cuts in 2026, which is generally positive for gold, a non-interest-bearing asset. These anticipated lower rates are weakening the US Dollar, which has dropped nearly 3% against a group of major currencies in the last quarter. Since gold is priced in dollars, a weaker Dollar makes it cheaper for buyers using other currencies, increasing demand. For derivative traders, this situation makes long positions in gold futures more appealing. Institutional buyers continue to show strong interest. After record purchases in 2022 and 2023, central banks have acquired over 800 tonnes this year. This steady demand from emerging markets provides a solid base for gold prices, reducing potential losses. Geopolitical tensions and ongoing economic uncertainties further strengthen gold’s position as a safe-haven asset. For traders in Pakistan, gold remains a primary hedge against the rupee’s depreciation, which has fallen 7% against the Dollar this year. Holding gold or gold derivatives is a defensive strategy against currency weakness. Given these factors, today’s slight price decline looks more like a temporary pause than a trend shift. This could be seen as a chance to build positions for the next few months. Bullish strategies, like buying call options on February or April 2026 gold futures, could be a good way to benefit from expected price increases due to changes in monetary policy. Create your live VT Markets account and start trading now.

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