Gold prices in Pakistan rose on Monday, based on FXStreet data. Gold was priced at PKR 42,356.48 per gram, up from PKR 42,198.95 on Friday.
Gold increased to PKR 494,037.70 per tola from PKR 492,200.30 per tola on Friday. Listed prices were PKR 423,564.80 for 10 grams and PKR 1,317,438.00 per troy ounce.
Pakistan Gold Price Snapshot
FXStreet converts international gold prices into Pakistani rupees using USD/PKR and local measurement units. Prices are updated daily at the time of publication and are for reference, as local rates may differ.
Gold is used as a store of value and a medium of exchange, and is also used in jewellery. It is often treated as a safe-haven asset and as a hedge against inflation and currency weakness.
Central banks hold the most gold and may buy it to diversify reserves. They added 1,136 tonnes worth about $70 billion in 2022, according to the World Gold Council.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move against risk assets such as shares. Price drivers include geopolitics, recession risks, interest rates, and US Dollar strength.
Market Drivers And Trading View
With the US Dollar Index slipping to 104.2 from its recent highs, we see an immediate opportunity in gold. This inverse relationship is a core market driver, and the dollar’s recent weakness provides a tailwind for precious metals. The market is clearly favoring assets priced against the dollar.
This dollar movement is heavily influenced by expectations for future interest rates. The latest US CPI data for March 2026 came in at a subdued 2.8%, increasing market bets that the Federal Reserve will initiate a rate cut by the third quarter. Lower interest rates decrease the opportunity cost of holding non-yielding assets like gold, making it more attractive.
We are also seeing continued strong demand from central banks, a trend that has persisted since the record buying we observed back in 2022. The World Gold Council’s most recent report indicated that central banks, particularly in Asia, collectively added over 290 tonnes in the first quarter of 2026. This consistent institutional buying provides a solid price floor and signals underlying strength in the market.
Geopolitical tensions also remain a factor, with ongoing trade negotiations and maritime disputes creating market uncertainty. During turbulent times, gold serves its classic role as a safe-haven asset. Looking back at how gold performed during the instability of 2025, we see a clear pattern of it acting as a hedge against volatility in riskier assets like equities.
Given these factors, derivative traders should consider establishing bullish positions. Buying call options on gold futures, perhaps targeting the resistance levels seen late last year, could offer significant upside. This strategy allows for participation in gold’s potential rally while defining risk in the coming weeks.
