Gold prices continue to rise steadily in both international and local markets, fueled by heightened global economic uncertainty and investor demand for safe-haven assets. As geopolitical tensions persist and inflation concerns grow, the precious metal is once again proving to be a preferred choice for investors seeking stability.
In the global market, gold prices surged to approximately $2,370 per ounce, gaining strength amid a weakening U.S. dollar and increased speculation about future interest rate policies by the Federal Reserve. The demand for gold has been further supported by mounting trade tensions, particularly between the U.S. and China, which have prompted risk-averse behavior across global markets.
On the local front, while gold prices are traditionally quoted in local currency, their dollar equivalent has also increased. For example, in Pakistan, the price of 24-carat gold per tola (approximately 11.66 grams) reached around $1,215, while 10 grams were priced at $1,040. These rates are derived from the prevailing global prices adjusted for exchange rates and local market premiums. Similarly, silver maintained its position, with per tola prices at about $12.15 and 10 grams at $10.40.
Several underlying factors are contributing to this sustained upward trend in gold prices. First and foremost is the ongoing economic uncertainty. Investors remain cautious amid fears of a global slowdown, stubborn inflation, and aggressive monetary policies by central banks. In addition, renewed geopolitical risks, particularly trade disputes and upcoming elections in major economies, have fueled demand for non-yielding assets like gold.
Another contributing factor is the increased interest from both institutional and retail investors. Central banks have been accumulating gold reserves to reduce dependence on the U.S. dollar, and investment funds have been increasing their exposure to the metal. This institutional support has added further momentum to the current rally.
The rise in gold prices brings mixed implications. While it benefits investors and national reserves, it poses challenges for industries such as jewelry and manufacturing, which rely on the metal for production. High prices could lead to reduced consumer demand in these sectors and increased costs for businesses.
Nonetheless, given the current global economic climate, gold is likely to retain its appeal as a safe investment. With no clear resolution in sight for the multiple challenges facing the global economy, the upward pressure on gold may persist. Investors are advised to stay informed, diversify their portfolios, and consider both short-term volatility and long-term value when navigating the precious metals market.