Gold prices in Pakistan went up on Monday. The price per gram increased to 38,917.76 Pakistani Rupees (PKR) from 38,779.00 PKR last Friday. The price for Gold per tola rose to PKR 453,929.20 from PKR 452,310.70 last week. The current rates for Gold in various units are 1,210,479.00 PKR per troy ounce and 389,160.30 PKR for 10 grams.

FXStreet Updates Gold Prices

FXStreet updates Gold prices in Pakistan by converting international prices into local currency. They make these updates daily. While these prices are mainly for reference, they might vary slightly from local market rates. Gold is historically significant as a safe store of value and as a medium of exchange. Today, it’s known as a safe-haven asset during uncertain times and serves as a hedge against inflation and currency depreciation. Central banks play a big role in the gold market, having purchased 1,136 tonnes in 2022, indicating strong demand. Gold typically rises when the US Dollar and US Treasuries fall. Geopolitical tensions or recession fears can push Gold prices higher as its safe-haven status attracts investors. Gold often thrives when interest rates are low, as this lowers borrowing costs; however, higher rates can negatively impact its value.

Gold’s Safe Haven Status

Gold’s role as a safe-haven asset is becoming increasingly important. Renewed geopolitical tensions in the South China Sea are driving investors away from riskier assets like stocks. In this climate, holding gold becomes a smart choice during uncertain times. Central banks continue to buy gold heavily, following the trend seen in 2022. Recent data shows that global central banks added another 855 tonnes in the first three quarters of 2025, focusing on diversifying away from the US Dollar. This strong demand supports gold prices. The US Federal Reserve’s recent shift towards a softer monetary policy is crucial for traders. With the Fed hinting at possible interest rate cuts in early 2026 due to slowing GDP growth, holding gold becomes more appealing. US 10-year Treasury yields have slipped to 3.7%, lowering the cost of holding gold. This change in Fed policy has weakened the US Dollar. The Dollar Index (DXY) is currently around 101.2, which is a significant decline from its 2024 average. This decline historically benefits gold; as gold is priced in dollars, a cheaper dollar makes it more affordable for foreign buyers. In the coming weeks, derivative traders may want to plan for further increases. Buying call options with strike prices targeting $2,500 per ounce for a December 2025 expiry could capture this upward trend. Implied volatility has increased slightly, indicating the market anticipates larger price movements, which traders should consider in their strategies. Create your live VT Markets account and start trading now.

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