Gold prices in Pakistan increased on Monday. According to FXStreet, gold is now priced at 39,564.74 Pakistani Rupees (PKR) per gram, up from 39,069.93 PKR on Friday. The price for one tola rose to 461,475.30 PKR from 455,704.00 PKR. FXStreet calculates gold prices in Pakistan by converting international prices to local currency and metric units. These prices are updated daily and may differ slightly from local rates, serving mainly as a reference.

Gold as an Investment Asset

Gold is seen as a safe investment, especially during economic uncertainty. It serves as a protection against inflation and currency devaluation since it isn’t tied to any specific issuer. Central banks are the largest buyers of gold, holding substantial reserves that boost economic confidence. In 2022, they added 1,136 tonnes to their gold reserves. Gold tends to rise in value when the US Dollar falls, making it a useful tool for diversifying assets during tough times. Gold prices can change due to various factors, including geopolitical tension and interest rate adjustments. Generally, lower interest rates lead to higher gold prices. Prices can also rise during geopolitical unrest or fears of a recession. Most gold price fluctuations are linked to how the US Dollar performs. On December 22nd, we’ve observed gold prices rise significantly compared to last week. This trend indicates increased interest in gold as we approach the end of 2025. Traders may want to consider this as a potential shift in short-term market sentiment.

Market Trends and Analysis

The increase in gold prices coincides with expectations that major central banks may cut interest rates in the first half of 2026. Recently, the US Dollar Index (DXY) dropped to around 103.5. This decline usually supports gold prices, making it more affordable for foreign currency holders, which can increase demand. The ongoing purchasing by central banks continues to strengthen the market. In 2023 alone, they added over 1,037 tonnes, nearly matching the record set in 2022. Reports suggest that this buying trend has continued into 2025. This steady demand from central banks creates a strong price floor that traders should keep in mind. Due to ongoing geopolitical unrest in many areas, gold is reinforcing its status as a safe-haven asset. Any rise in global tensions could lead to significant price increases in the coming weeks. Options strategies that take advantage of sudden price jumps or higher volatility may be particularly valuable during this time. We’ve also noted some profit-taking in major stock indices after a strong fourth quarter, with the S&P 500 hitting recent highs. A possible shift away from riskier assets could lead more investments into gold. This situation suggests that holding long positions in gold could be a useful hedge against a potential downturn in the equity market. Create your live VT Markets account and start trading now.

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