Gold prices in Pakistan were broadly unchanged on Friday, based on data compiled by FXStreet. Gold was priced at PKR 41,868.55 per gram, the same as Thursday.
Gold also held steady at PKR 488,346.60 per tola, unchanged from the previous day. Other listed rates were PKR 418,685.50 for 10 grams and PKR 1,302,259.00 per troy ounce.
How FXStreet Calculates Local Gold Prices
FXStreet derives Pakistan’s gold prices by converting international prices using the USD/PKR exchange rate and local measurement units. The figures are updated daily at the time of publication and are for reference, as local prices may differ slightly.
Gold is commonly used as a store of value and as jewellery, and is also treated as a safe-haven asset. It is also used as a hedge against inflation and currency depreciation.
Central banks are the largest holders of gold and may buy it to diversify reserves. According to the World Gold Council, central banks added 1,136 tonnes worth about $70 billion in 2022, the highest annual total on record.
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 react to geopolitical events, recession fears, and changes in interest rates, and it is priced in US dollars as XAU/USD.
Key Market Drivers For Gold
We see gold acting as a key safe-haven asset, especially given the current economic climate. The U.S. Dollar Index (DXY) has recently slipped to around 101.5, showing a clear inverse relationship with the precious metal. This weakness in the dollar is making gold more attractive for traders in the coming weeks.
The U.S. Federal Reserve’s recent pivot is a critical factor for derivatives positioning. After holding rates steady in March 2026, their signaling of potential cuts by mid-year is putting downward pressure on Treasury yields. As a non-yielding asset, gold becomes a much more compelling holding when the opportunity cost of forgoing interest income falls.
We are now seeing inflation cool significantly, with the latest Core CPI figures at 2.8%, a level not seen since late 2023. Looking back from our 2026 viewpoint, we recall the aggressive rate hikes throughout 2025 that were designed to tame post-pandemic price pressures. This successful taming of inflation is precisely what is now giving the Fed room to consider easing policy.
A strong undercurrent of support for gold comes from continued central bank purchasing. Data showed that these institutions added nearly 1,000 tonnes to their reserves during 2025, a pace that rivals the record-breaking year of 2022. This consistent demand, particularly from emerging economies, creates a solid price floor and should be factored into any trading strategy.
With gold recently pushing past $2,550 an ounce, implied volatility in the options market has picked up. Traders should consider strategies that benefit from this upward trend, such as buying call options or establishing bull call spreads to manage costs. This approach allows for participation in potential further gains while defining risk, especially ahead of upcoming Fed meetings.
