Gold prices in Pakistan stayed steady on Wednesday, according to FXStreet data. The price of gold per gram was 40,469.35 Pakistani Rupees (PKR), showing little change from the previous day’s price of PKR 40,473.68. The price for one tola of gold was PKR 472,026.60, slightly down from PKR 472,077.00 the day before. For larger quantities, 10 grams were priced at 404,693.50 PKR, and a troy ounce was sold for 1,258,753.00 PKR.

Gold Pricing Mechanism

FXStreet determines gold prices in Pakistan based on global rates converted to local currency, updated daily according to market conditions. The prices mentioned are indicative, meaning local rates may vary slightly. Gold is often seen as a safe investment and a reliable store of value, especially during uncertain times. Central banks, particularly in emerging economies, buy significant amounts of gold to stabilize their currencies. Gold prices usually rise when the US Dollar weakens. They can also be influenced by geopolitical issues, recessions, and interest rates. A weaker Dollar tends to lead to higher gold prices. As we look toward the new year, gold’s steady prices present a chance for investors. The market is now anticipating potential US interest rate cuts by mid-2026. This outlook is putting pressure on the US Dollar, which has recently dipped below 100 on the DXY index, a level it hasn’t seen in over a year. A weaker dollar and projected lower interest rates make it less costly to hold assets like gold, boosting its appeal.

Central Bank Demand

We should also note the ongoing demand from central banks, which has supported gold prices. This trend has continued into 2025, following record purchasing in 2022 and 2023 when central banks added over 1,000 tonnes to their reserves each year. Strong buying from countries like China and India suggests that any significant drops in prices will be met with robust support. Geopolitical uncertainty plays a vital role in maintaining gold’s status as a safe haven, especially as we enter January. Ongoing trade tensions and regional conflicts make investors wary of riskier assets. An increase in these tensions could quickly lead to a rise in gold demand as a protective measure. While inflation has decreased from recent highs, it has remained persistently above central bank targets throughout 2025. This situation reinforces gold’s traditional role as a safeguard against currency devaluation. We expect that if price pressures persist into the first quarter of the new year, investors will continue to flock to gold. The inverse relationship between gold and equities should steer our strategy in the coming weeks. With stock markets showing signs of weakness after a long rally, a pullback could lead to a shift toward safe havens. Using call options could be an effective way to gain exposure to gold while protecting against potential downturns in riskier assets. Create your live VT Markets account and start trading now.

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