Gold prices in Pakistan fell on Monday, according to FXStreet-compiled data. The metal was priced at PKR 38,583.40 per gram, down from PKR 38,767.22 on Friday, while the per tola rate eased to PKR 449,949.30 from PKR 452,173.30. Other reference levels put gold at PKR 385,765.50 for 10 grams and PKR 1,200,091.00 per troy ounce, based on daily market rates at the time of publication.
FXStreet derives local prices by translating international moves through the USD/PKR rate into Pakistani units, and said quoted levels are for reference as local market rates can diverge. Separately, World Gold Council data cited in the report showed central banks added 1,136 tonnes of gold worth around $70 billion in 2022, the highest annual purchase on record, with emerging-economy central banks such as China, India and Turkey increasing reserves. The report also described gold’s inverse correlation with the US Dollar and US Treasuries, and its pricing in XAU/USD.
Market Drivers And Gold’s Macroeconomic Appeal
We see the recent minor dip in gold prices as a buying opportunity within a larger bullish trend. The core drivers for gold remain its inverse relationship to the US dollar and future interest rate expectations. We believe the market is currently underpricing the potential for monetary easing by the US Federal Reserve later this year.
Recent economic reports, including last month’s US jobs data which showed a slight uptick in unemployment to 4.1%, point to a cooling economy. This has shifted expectations, with futures markets now pricing in a greater than 60% probability of a Fed rate cut by the fourth quarter of 2026. A less aggressive Fed historically weakens the dollar, providing a direct tailwind for gold prices.
Furthermore, with US inflation moderating to an annualized rate of 2.6% in the latest Core PCE reading, real yields on government bonds are set to decline if the Fed begins to cut rates. Gold becomes a more attractive asset to hold when bonds offer lower returns after accounting for inflation. This dynamic creates a favorable environment for the non-yielding precious metal.
Central Bank Buying, Geopolitical Support, And Trading Strategies
We also see strong foundational support from consistent central bank buying, which the World Gold Council confirmed continued at a robust pace in the first quarter of 2026. This, combined with persistent geopolitical tensions in several global hotspots, provides a solid price floor. These factors are creating a powerful long-term support structure that insulates gold from minor pullbacks.
Given this outlook, we believe derivative traders should consider establishing long positions. Buying call options or setting up bull call spreads for the coming months would provide upside exposure while capping potential losses. Implied volatility is currently moderate, suggesting that options are not overly expensive at these levels.
