Gold prices in Pakistan stayed steady on Wednesday. The price per gram was 34,894.75 PKR, and the rate per tola was 407,006.00 PKR, showing minimal change from the day before. Since 2025, gold prices have jumped by 45%. In September alone, they rose 11% as people turn to gold amid global uncertainty. Potential U.S. government shutdowns and interest rate cuts could boost gold’s appeal further.

Interest Rate Forecasts

The CME Group’s FedWatch Tool shows a 95% chance of an interest rate cut in October and over 75% for December. The U.S. Bureau of Labor Statistics noted 7.22 million job openings in August, slightly exceeding expectations. Geopolitical tensions between Russia and Ukraine continue to drive gold’s demand as a safe investment. FXStreet explains that Pakistan’s gold prices adapt international rates to local currency, which can cause some differences. Historically, gold has served as a reliable store of value and medium of exchange. Central banks hold the most gold and made significant purchases in 2022 to strengthen economic stability. Typically, when the U.S. Dollar weakens and interest rates drop, gold prices rise. With gold already up an impressive 45% since early 2025, we can expect prices to keep climbing. As gold reaches new all-time highs, strategies should be set to take advantage of further gains. The market’s current stability hints at a short pause before moving higher.

Impact of U.S. Government Shutdown

The partial U.S. government shutdown, starting today, will likely drive people toward safer investments. The Congressional Budget Office estimated that the 2018-2019 shutdown cost the U.S. economy about $3 billion, showing that such events have real consequences. This historical data suggests that a long shutdown may hurt economic performance and boost gold prices, making long call options a smart choice in the coming weeks. Additionally, the market predicts almost certain Federal Reserve rate cuts in October and December. This dovish approach favors non-yielding assets like gold. We saw a similar pattern during the Fed’s easing cycle in 2019, when gold rose over 15% in just months. Despite some cautious Fed officials, the expectation for lower rates supports bullish gold positions. Strong demand from institutional investors also supports gold prices. Central banks have been actively buying, with recent World Gold Council data showing them as major net buyers in the third quarter of 2025. This consistent demand helps stabilize prices and suggests that any drops will likely attract robust buying interest. Finally, escalating geopolitical issues, such as the U.S. potentially supplying long-range missiles to Ukraine, add market uncertainty. Such tensions usually benefit safe-haven assets like gold. This volatile environment makes options strategies especially useful for managing risk while being positioned for gold’s upward potential. Create your live VT Markets account and start trading now.

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