As the global economy braces for the potential impact of upcoming US tariffs, gold prices have surged to an all-time high. Investors are turning to the precious metal as a safe-haven asset, leading to a significant rise in both local and international markets.
Gold Prices Soar in Pakistan
In Pakistan, the price of gold per tola reached a staggering Rs323,380, marking a sharp increase of Rs2,380 in a single day. Similarly, 10-gram gold climbed to Rs277,246, up by Rs2,041, according to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA).
This unprecedented hike aligns with the surge in global gold prices, where gold hit $3,074 per ounce, reflecting a $22 gain.
International Gold Market Trends
The international market witnessed intense fluctuations, with gold peaking at $3,086 per ounce on Friday before slightly stabilizing at $3,072. The record-breaking rally comes as investors respond to economic uncertainties, geopolitical tensions, and looming US tariffs.
According to Adnan Agar, Director of Interactive Commodities, the market remains strong and highly volatile, with potential price corrections expected in the coming weeks. The upcoming US employment data and the April 2 tariff deadline imposed by President Donald Trump are key factors influencing investor sentiment.
Why Are Gold Prices Rising?
Several factors are driving this rapid increase in gold prices:
- US Tariffs and Trade War Fears – With the April 2 deadline for additional US tariffs approaching, investors are shifting towards gold as a safe-haven investment.
- Geopolitical Uncertainty – Ongoing tensions and trade policies under the Trump administration have raised concerns about global economic stability.
- Weaker US Dollar – The dollar is on track for a quarterly decline, making gold a more attractive asset.
- Investor Sentiment – As economic data unfolds, traders anticipate further price movements, keeping the gold market highly dynamic.
Rupee Gains Amidst Market Uncertainty
While gold prices are skyrocketing, the Pakistani rupee showed slight improvement, appreciating by six paisa in the inter-bank market, closing at 280.16 against the US dollar. The rupee’s modest gain reflects investor confidence despite economic uncertainty.
Global Currency & Market Trends
- The US dollar faced pressure due to tariff-related economic concerns and remains on track for a quarterly decline.
- The euro is experiencing its strongest quarterly gain in over a year, fueled by hopes of peace in Ukraine and a weaker US dollar.
- The Japanese yen also saw slight gains, reinforcing investor sentiment towards safer assets.
What’s Next for Gold?
Market analysts predict that gold may experience a temporary correction, but its long-term outlook remains bullish. As global economic uncertainties persist, demand for gold is expected to stay strong.
For investors, this is a critical time to monitor market trends and make informed decisions regarding gold trading and investment strategies.