Gold prices in Pakistan went up on Wednesday, according to FXStreet data. The price per gram increased to 41,764.12 Pakistani Rupees (PKR), up from 41,381.18 PKR the day before. The price per tola also rose to PKR 487,126.90 from PKR 482,662.00. FXStreet calculates gold prices using international rates (USD/PKR), updating the figures each day. The price per troy ounce was 1,299,022.00 PKR. FXStreet notes that local prices may vary slightly.

The Role Of Gold As A Safe-Haven Asset

Gold has always been a reliable store of value and is seen as a safe-haven asset against inflation. Major central banks, like those in China, India, and Turkey, purchased 1,136 tonnes of gold worth about $70 billion for their reserves in 2022. Gold prices often move in the opposite direction of the US Dollar and Treasury yields. When there’s geopolitical tension or fears of a recession, gold prices tend to rise, especially when interest rates are low. A weaker US Dollar usually leads to higher gold prices. Currently, gold prices are on the rise, reflecting broader market worries as we start 2026. This trend aligns with gold’s status as a safe-haven asset during uncertain times. Recent geopolitical tensions have caused uncertainty, prompting investors to seek tangible assets like gold.

Impact Of US Dollar On Gold Prices

The relationship between gold and the US Dollar is crucial right now. Following the Federal Reserve’s signals late last year about possibly pausing interest rate hikes, the Dollar Index has weakened from its 2025 highs, recently falling below 102.5. A weaker dollar makes gold, priced in USD, cheaper for those using other currencies, increasing its attractiveness. Additionally, the persistent demand from central banks is a strong support factor. In 2025, central banks bought over 950 tonnes of gold, marking the second-highest year of net purchases on record. This trend indicates a shift towards diversifying reserves away from the dollar, which we expect to continue this year. Looking back at the stock market performance in the last quarter of 2025, we saw a lot of volatility that has continued into the new year. As long as stock market rallies are uncertain, gold is likely to benefit from funds moving away from riskier assets. If major stock indices suffer a sell-off, it could provide another boost for gold prices. For traders in the derivatives market, this environment suggests preparing for further gains in the coming weeks. Buying call options on gold futures or ETFs can be a way to profit from a possible price rise while managing your risk. Additionally, considering bull call spreads can reduce upfront costs, making it a smart strategy given the recent increase in prices. Create your live VT Markets account and start trading now.

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