Gold prices in Pakistan were broadly unchanged on Thursday, based on figures compiled by FXStreet. Gold was priced at PKR 42,347.61 per gram, compared with PKR 42,343.80 on Wednesday.
Per tola, gold stood at PKR 493,934.20, up from PKR 493,889.80 a day earlier. FXStreet also listed PKR 423,476.10 for 10 grams and PKR 1,317,159.00 per troy ounce.
How FXStreet Calculates Local Gold Prices
FXStreet estimates local gold prices by converting international rates using USD/PKR and local measurement units. The figures are updated daily using market rates at the time of publication, and local prices may vary slightly.
Central banks are the largest holders of gold. World Gold Council data shows central banks added 1,136 tonnes worth about $70 billion in 2022, the highest annual total since records began.
Gold often moves inversely to the US Dollar and US Treasuries, and can also move opposite to risk assets such as equities. Its price can be affected by geopolitical events, recession risks, interest rates, and shifts in the US Dollar, as it is priced in dollars (XAU/USD).
While local gold prices are showing stability, we are focused on the global price, which is reacting to conflicting economic signals. The inverse correlation between gold and the US Dollar remains the most critical factor, with the Dollar Index recently strengthening on renewed interest rate concerns. This dynamic is creating tension in the market that derivative traders can position for.
Central Bank Buying And Strategy Implications
We look at the massive central bank purchases seen in recent years, such as the record 1,037 tonnes added in 2023, as a continuation of the trend that started back in 2022. This persistent buying, particularly from emerging economies which we saw continue throughout 2025, provides a strong floor under the gold price. This suggests that selling out-of-the-money puts or implementing bull put spreads could be a viable strategy to capitalize on this underlying support.
The primary driver for the coming weeks will be US inflation data and its effect on interest rate policy, as gold is a yield-less asset. After the Federal Reserve enacted several rate cuts in 2025, the most recent March 2026 inflation report came in higher than expected at 3.1%, surprising markets. This has pushed expectations for further rate cuts back, creating significant uncertainty and making long volatility plays like straddles on gold ETFs an interesting proposition.
Gold’s role as a safe-haven asset continues to be relevant due to lingering geopolitical instability in several parts of the world. This consistent background risk provides a buffer against sharp sell-offs, even when interest rate expectations turn against the precious metal. We see this as a reason to avoid overly bearish positions, as any escalation in global tensions could trigger a rapid flight to safety.
Considering these factors, the market appears caught between strong central bank support and hawkish interest rate pressure. This environment is ideal for strategies that profit from a defined price range, such as selling an iron condor, to collect premium as long as gold does not make a significant breakout. The key will be to watch if the price breaks decisively in response to the next major economic data release.
