ISLAMABAD – Pakistan witnessed unprecedented surge in gold prices, as 10 grams of gold crossed historic mark of Rs400,000 for the first time ever. The global gold market is on fire, with one ounce of gold surpassing $4,480, sending shockwaves through investors and consumers alike.
Data shared by Saraffa Association shows price of 10 grams of gold skyrocketed by Rs7,288, reaching a staggering Rs403,687. Meanwhile, the price per tola jumped by 8,500 to nearly 471,000. This meteoric rise marks the fastest increase in gold prices since the 1970s, with gold now up almost 50% since April.
Global economic and political uncertainty are pushing prices up as investors worldwide are flocking to bullion as safe haven, fearing financial crises and market volatility. Experts say US President Donald Trump’s trade policies and the ongoing tension in global commerce have fueled this rush. Announcements of interest rate cuts have only added fuel to the fire.
Some expers claim that US government shutdown was key factor behind the spike. During past shutdowns, investors gravitate toward gold. For example, during a one-month government shutdown in Trump’s first term, gold prices jumped nearly 4%. The extraordinary rise last month far exceeded analysts’ expectations.” Contributing factors include the weakening US dollar and growing interest from retail investors.
But not everyone buys gold bars or coins. Many investors are pouring money into financial instruments like Gold ETFs, which are backed by physical gold. The World Gold Council reports that over $64 billion has been invested in gold ETFs this year alone.
Some experts believe the spike in gold could last at least five more years, and prices will naturally fluctuate. For the unversed, Gold prices often drop when interest rates are cut or global political uncertainty eases.
In year 2022, gold prices plunged from $2,000 per ounce to $1,600 when US central bank jacked up interest rates to control post-pandemic inflation. Experts warn that sudden spikes in inflation could force rate hikes, potentially cooling the gold frenzy. For now, the market expects interest rates to drop, keeping investors eager to buy gold. Trump’s relentless pressure on the Federal Reserve, including attempts to remove Governor Lisa Cook, has only added to uncertainty, increasing gold’s allure as a safe haven.
Gold prices hit record high in Pakistan with Rs8,500 jump per tola
