Gold prices in Pakistan rose on Friday, according to FXStreet. The price hit 44,399.44 Pakistani Rupees (PKR) per gram, up from PKR 44,056.76 on Thursday. The cost per tola also increased to PKR 517,864.80, from PKR 513,869.40 a day earlier. FXStreet adjusts international gold prices (USD/PKR) to local currency and updates them daily based on market conditions.

Historical Significance of Gold

Gold has always been valuable and serves as a safe investment in uncertain times. It is seen as a protection against inflation and currency loss since it is not tied to any single issuer or government. Central banks hold the largest gold reserves. In 2022, they added 1,136 tonnes, valued at about $70 billion—this was the biggest yearly increase ever. Emerging countries like China, India, and Turkey are quickly boosting their gold reserves. Gold prices tend to move in the opposite direction of the US Dollar and Treasuries. When the Dollar weakens, gold prices often rise. Various factors, such as global instability and changes in interest rates, affect prices. Lower interest rates can raise gold prices, while a strong Dollar usually keeps prices stable. The recent rise in gold prices, now over 517,800 PKR per tola, reflects an international trend. This movement is influenced by both the global price in US dollars and the changing value of the local currency. It’s essential to understand both factors to predict future price directions. Towards the end of 2025, US inflation rates began to decrease, leading some to speculate that the Federal Reserve might pause interest rate hikes. Typically, when lower rates are anticipated, the cost of holding non-yielding gold decreases, making it more appealing. Thus, the Fed’s communications about its 2026 policy are crucial for gold prices.

Influence of Geopolitical Tensions

Ongoing geopolitical tensions from 2025 keep gold a sought-after safe investment. This uncertainty drives some investors to steer clear of riskier assets like stocks, which showed increased volatility and sideways movement in late 2025. Central banks continue to be significant buyers in this market. Following previous record purchases, data from the World Gold Council indicates that central banks in emerging markets remained net buyers throughout 2025. This steady demand sets a strong price floor and absorbs excess supply from the market. For traders in Pakistan, the weakening of the Rupee against the US dollar in the latter half of 2025 has intensified the rise in gold prices. Even if international gold prices stabilize, a weaker Rupee could still result in higher local prices. Therefore, it’s crucial to monitor both the USD/PKR exchange rate and the international XAU/USD chart closely. Given these factors, it may be wise to adopt strategies that take advantage of potential price increases. This could include using derivatives like call options to capture potential gains while limiting risks. Keep an eye on upcoming US inflation and employment reports, as these will significantly impact market trends. Create your live VT Markets account and start trading now.

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