Gold prices in Pakistan fell on Monday, based on data compiled by FXStreet. Gold was priced at PKR 43,088.14 per gram, down from PKR 43,444.40 on Friday.
The price per tola dropped to PKR 502,571.00 from PKR 506,727.00 on Friday. Other listed rates were PKR 430,880.90 for 10 grams and PKR 1,340,221.00 per troy ounce.
FXStreet calculates local gold prices by converting international prices using the USD/PKR rate and local measurement units. Prices are updated daily at the time of publication and are for reference, as local market rates may differ slightly.
Central banks are the largest holders of gold. They added 1,136 tonnes worth around $70 billion in 2022, according to the World Gold Council, the highest annual total since records began.
Gold often moves in the opposite direction to the US Dollar and US Treasuries, and it can also move against risk assets such as equities. Prices may also respond to geopolitical events, recession fears, and changes in interest rates, as gold is priced in US dollars.
We see the small dip in gold prices as a temporary breather rather than a major shift. This could present a buying opportunity for traders positioning for the coming months. The market is primarily focused on future central bank policies, especially from the US.
The persistent chatter about the Federal Reserve starting to cut interest rates later this year is a significant tailwind for gold. We saw US inflation data cool in the final quarter of 2025, which supports the case for lower rates. As a non-yielding asset, gold becomes more attractive when interest rates fall.
We should also consider the steady demand from central banks, which provides a solid floor for prices. Last year, in 2025, central banks in emerging economies were once again major buyers, with the People’s Bank of China adding significantly to its reserves each month. This underlying demand is a powerful long-term bullish signal.
The US Dollar’s recent softness also supports higher gold prices, as a weaker dollar makes gold cheaper for foreign buyers. The Dollar Index (DXY) has trended below the 104 mark, reflecting the market’s expectation of rate cuts. Lingering geopolitical instability continues to underpin gold’s appeal as a safe-haven asset.
For derivative traders, this suggests that buying call options with expirations in the next three to six months could be a prudent strategy. This allows us to capitalize on potential price increases driven by rate cuts without taking on the full risk of holding the physical asset. Look for strikes just above the current trading range to balance cost and potential upside.
