Gold prices have surged dramatically, reaching all-time highs in both international and local markets. The increase is driven by global economic uncertainty, inflation concerns, and fluctuating trade policies.
Gold Prices in the International Market
According to the latest updates, gold prices in the international bullion market saw a significant rise of $27 per ounce, pushing the price to $2,942. This surge brings gold closer to its record-high level, as economic instability fuels demand for safe-haven assets. Spot gold gained 0.3% to reach $2,940.99 per ounce, just a few dollars shy of its all-time peak of $2,956.15 recorded on February 24.
Gold Prices in Pakistan
The impact of rising international prices is also visible in the local Pakistani market, where gold prices have hit new record levels:
✅ Gold per tola: Increased by Rs 2,800, reaching Rs 309,300.
✅ Gold per 10 grams: Rose by Rs 2,400, setting a new record of Rs 265,174.
Just a day earlier, gold prices had already increased by Rs 500, reaching Rs 306,500 per tola in the local market. The continued upward trend highlights the growing demand for gold amidst economic uncertainty.
Reasons Behind the Surge in Gold Prices
Several factors have contributed to the sharp increase in gold prices, both globally and locally:
1️⃣ US Inflation and Interest Rates – The latest US inflation report has strengthened expectations that the Federal Reserve might cut interest rates soon, making gold a more attractive investment.
2️⃣ Safe-Haven Demand – Investors are turning to gold as a hedge against economic downturns, trade tensions, and inflation concerns.
3️⃣ Tariff-Driven Economic Slowdown – US President Joe Biden’s trade policies, along with retaliatory tariffs from China and Canada, have shaken global financial markets, boosting gold’s appeal as a stable asset.
4️⃣ Macquarie’s Upgraded Forecast – Investment firm Macquarie has revised its gold price forecast, predicting prices could reach $3,150 per ounce in the third quarter of this year, with a potential peak of $3,500 per ounce.
Outlook for Gold Prices
Experts remain bullish on gold’s future. Ole Hansen, Head of Commodity Strategy at Saxo Bank, stated:
“Gold continues to be supported by the prospect of a tariff-driven economic slowdown, potentially bringing forward U.S. Fed rate cut expectations.”
With global economic instability and rising inflation, gold is expected to maintain its upward trend, making it a preferred asset for investors worldwide.