Gold prices in Pakistan rose on Monday, with the cost per gram reaching 26,304.74 PKR, an increase from 26,249.55 PKR on Friday. The price per tola also rose, now at 306,813.30 PKR compared to 306,169.70 PKR previously.

Prices for gold are as follows: 1 gram is 26,304.74 PKR, 10 grams are 263,047.40 PKR, and a troy ounce is priced at 818,169.50 PKR. Daily updates are provided, reflecting local and international market conditions.

Central banks added 1,136 tonnes of gold, valued at approximately $70 billion, to reserves in 2022, marking the highest annual purchase historically. Gold inversely correlates with both the US Dollar and risk assets, influencing its price based on geopolitical events, interest rates, and currency strength.

Gold prices have edged up in Pakistan at the start of the week. A modest increase has been seen both per gram and per tola, aligning with fluctuations in broader markets. This movement reflects changing conditions locally and globally, highlighting the role of external factors in precious metal trends.

One of the largest players remains central banks, which collectively accumulated over a thousand tonnes of gold in 2022. This was the highest yearly purchase on record and underlines how these institutions view gold’s role in maintaining financial stability. With such strong buying patterns, it reinforces gold’s long-term appeal as a store of value, especially when economic conditions become uncertain.

Historically, gold prices tend to move in the opposite direction to the US Dollar and riskier assets. When the currency strengthens, gold often pulls back, and when investors seek safer alternatives, buying increases. This balance means geopolitical tensions, monetary policy changes, and interest rate shifts all have a measurable effect on pricing.

For traders using derivatives, these price dynamics require close monitoring. Changes in central bank strategies or adjustments in monetary policies could lead to fluctuations that present both opportunities and risks. When economic instability increases and the US Federal Reserve signals potential shifts in interest rates, gold can become more attractive as a hedge.

A strong dollar may create downward pressure, but if inflation persists or economic slowdown concerns grow, gold tends to retain its strength. Traders should be prepared for price swings driven by policy updates and shifts in investor sentiment. Given the steady accumulation by central banks and the ongoing uncertainties in financial markets, attention to macroeconomic indicators remains necessary in the coming weeks.