KARACHI:
Gold prices in Pakistan rose to a new record on Monday, reflecting a sharp rally in international gold markets as investors flocked to safe-haven assets amid escalating political and currency uncertainty in the United States.
In the local market, gold price per tola jumped by Rs 7,700 to hit an all-time high of Rs 480,962, according to the Sarafa Jewelers and Jewelers Association of Pakistan. Similarly, 10 gram gold price rose by Rs 6,602 to Rs 412,347.
Internationally, spot gold climbed 2.5 percent to $4,620.56 an ounce by 10:50 a.m. ET, after hitting a record high of $4,627.27 earlier in the session. U.S. gold futures for February delivery rose 2.9 percent to $4,631.30, according to Reuters. Silver also rallied strongly, hitting a new record high above $85 an ounce.
Market participants attributed the rally to heightened uncertainty surrounding US monetary policy and political developments. Adnan Agar, director of Interactive Commodities, said the continued rise in gold is due to many factors, with the US Federal Reserve playing the most critical role.
“The primary reason is the Fed. Markets are under pressure due to expectations of rate cuts, which are clearly favorable to gold and silver,” Agar said. He added that political uncertainty associated with the Trump administration and broader geopolitical risks are further fueling investor demand for precious metals.
Gold has now reached an all-time high of $4,627 an ounce and continues to trade just below that level, suggesting further upside if current conditions persist. Agar noted that silver has also broken its previous high of $84, reaching $85.73, and has already returned 16% year-to-date.
Meanwhile, the Pakistani rupee gained Rs0.01 to close at 280.01 against the dollar, extending last week’s modest interbank gains.
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