Gold prices in Pakistan went up on Monday. The price per gram rose to 38,400.95 Pakistani Rupees (PKR), from 38,201.93 PKR on Friday. The cost per tola also increased, reaching 447,896.90 PKR, up from 445,579.90 PKR the previous week. FXStreet adapts international gold prices to local currency rates using the USD/PKR exchange rate. Daily updates reflect market rates at the time of publication, although local prices may vary slightly. The price for 10 grams is now 384,006.30 PKR, and a troy ounce costs 1,194,396.00 PKR.

Gold As A Safe Haven Asset

Gold has always been a valuable asset and is now considered a safe place to invest during uncertain times. It helps protect against inflation and currency devaluation. Central banks, especially in countries like China and India, are major buyers of gold, adding 1,136 tonnes worth about $70 billion in 2022. Gold prices usually move in the opposite direction of the US Dollar and US Treasuries. Its value can be affected by geopolitical tensions and fears of a recession. When interest rates are low, gold becomes more appealing since it doesn’t yield interest, while a strong Dollar often lowers its price. The increase in local gold prices today reflects a broader global trend as we approach late 2025. Gold is being used as a hedge against currency depreciation in many emerging markets, including Pakistan. This growing interest is something traders should keep an eye on. Central bank purchases continue to support gold prices, a trend that has accelerated since the record buys in 2022 and 2023. Recent data from the World Gold Council showed that in the third quarter of 2025, central banks, particularly in Asia, added another 280 tonnes to their reserves. This steady demand indicates that price drops are likely seen as buying opportunities by major institutions.

The Impact Of Inflation And Interest Rates

The recent price changes also reflect ongoing inflation and its impact on interest rate expectations. Although inflation has decreased from the highs of 2023, the latest US Consumer Price Index (CPI) reading for October 2025 was still a stubborn 3.1%, remaining above the Federal Reserve’s target. This makes gold, which doesn’t yield interest, more appealing for preserving wealth. Keeping an eye on the US Dollar is crucial for traders. Recent US GDP data for Q3 2025 showed a slowdown in growth to 1.5%, leading the market to anticipate potential Fed rate cuts in the first half of 2026. A weaker dollar, which usually follows rate cut expectations, often pushes gold prices higher. With these factors in play, traders in derivatives should seek bullish strategies. Buying call options on gold futures or ETFs could provide limited-risk exposure to price increases. It’s essential to monitor upcoming US employment and inflation data, as any signs of economic weakness could boost gold’s momentum. Create your live VT Markets account and start trading now.

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