Gold prices in Pakistan were largely unchanged on Monday, based on FXStreet data. Gold was priced at PKR 40,693.98 per gram, compared with PKR 40,668.40 on Friday.
Gold stood at PKR 474,635.10 per tola, up from PKR 474,348.30 on Friday. Other listed rates were PKR 406,929.90 for 10 grams and PKR 1,265,696.00 per troy ounce.
FXStreet derives local gold prices by converting international prices using the USD/PKR rate and local units. The figures are updated daily at publication time and are for reference, as local market rates may vary.
Central banks are the largest holders of gold. World Gold Council data shows central banks added 1,136 tonnes of gold worth about $70 billion in 2022, the biggest annual purchase on record.
Gold often moves opposite to the US Dollar and US Treasuries, and can also move against risk assets such as shares. Its price may also respond to geopolitical tensions, recession concerns, and interest rate changes, as gold offers no yield and is priced in US dollars.
Gold prices are currently showing significant stability, holding firm despite headwinds from monetary policy. The price is steady even as the US Dollar Index continues to hover around a strong 106 level, suggesting an underlying floor of support. This resilience points to a market that is absorbing pressure from high interest rates better than expected.
We believe this support is largely due to relentless buying from central banks, a trend that has accelerated since we saw them purchase record amounts in 2025. The World Gold Council’s Q1 2026 report showed global central banks added another 290 tonnes to their reserves, marking the strongest start to a year on record. This consistent demand is creating a solid base for prices, independent of traditional investment flows.
Traders should also watch for any increase in geopolitical risk, as this can trigger a flight to safety. As a safe-haven asset, gold’s value often increases during times of global uncertainty, providing a hedge against volatility in riskier assets like stocks. This makes holding long positions or call options a viable strategy to protect against sudden market shocks.
The primary challenge for gold in the coming weeks remains the “higher for longer” interest rate outlook. The most recent US inflation data from April 2026 showed core inflation persisting at 2.9%, making it unlikely the Federal Reserve will cut rates soon. As a non-yielding asset, gold can struggle when interest rates on government bonds are high.
This creates a scenario where the price may be caught between strong physical demand and restrictive monetary policy, a situation we also observed for parts of 2023. For derivatives traders, this could mean selling puts below the current support level is a viable strategy to collect premium. Meanwhile, buying call spreads could offer a defined-risk way to position for a breakout if recession fears begin to outweigh inflation concerns.
