Karachi:
The rhetoric and escalation of commercial tensions between the United States and China have fueled panic among investors, leading them to seek refuge in gold. As a result, gold prices reached a high level on Wednesday.
In Pakistan, the price of gold increased significantly, with percentages per Tola increasing by RS5,300 to hit an RS299,600 record, according to data from All-Pakistan Gems and Jewelers Sarafa Association (APGJSA).
The significant increase in gold prices is mainly attributed to the fears of a possible new trade war. This escalation began when Beijing imposed invoices on US imports in retaliation to new US tasks for Chinese goods. In addition, Trump’s statement on the US “withdrawing” the Gaza Strip has contributed to these concerns.
“US President Donald Trump’s observations on Gaza, in which he has suggested that Israel should take control and displace the local population, played an important role in driving gold prices,” said Abdullah Abdul Razzaq, Member of APGJSA, at The Express Tribune. Razzaq said that historically, gold was a preferred security asset in times of political and economic instability. Investors tend to shift their capital to gold when there is a fear of escalating conflict, as it is regarded as a fixed value shop.
Razzaq said that if geopolitical tensions continue to escalate, especially in the Middle East, it is likely that gold prices will maintain their upward momentum. On the contrary, any diplomatic resolutions or relaxation of tensions could lead to stabilization or correction in the gold market.
“The golden market was extremely active, with prices ranging sharply,” said Adnan Agar, director of interactive products. He points out that recent geopolitical tensions, especially US sanctions on Iran and the ongoing situation in Gaza, have fueled the demand for gold as a safe asset. He also noted that comments by former US President Donald Trump have historically influenced market volatility.
Looking forward, Agar emphasized the importance of the upcoming financial data, especially the US payroll report, which could determine the next direction for gold prices. While expecting a possible correction of $ 50-$ 60 prices, he warned that if gold continues his strong rally without a break, the chances of a sharp fall would increase. He also stressed that, unlike stocks, gold does not offer dividends, making profit a common phenomenon after significant price increases.
Market expectations indicate that if the momentum insists, gold prices could reach $ 2,900 in the short term. Long -term projections show that gold can continue its upward orbit. Earlier, the analyst predicted that the yellow metal could reach $ 3,000 or even $ 3,300 per ounce by 2025.
At international level, global gold demand, including negotiation (OTC), increased by 1% on a high record of 4,974.5 metric tones in 2024 as the investment increased, the Gold Gold Council (WGC) said, adding that central banks rushed to buy the fourth quarter.
Gold prices rose by 27% last year, most in 2010, as investors chose the metal to offset the global dangers and as US federal reserves destroyed interest rates. Prices hit the Tuesday on Tuesday, resulting in security requirement, after China reacted with invoices in the United States in response to President Donald Trump’s trade contributions.
Gold prices reiterated on Tuesday, resulting in investors looking for security assets after China hid in the US in response to President Donald Trump’s invoices. Spot Gold won 1.1% at $ 2,844.56 per ounce, after raising a record of $ 2,845.
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