KARACHI: Gold prices surged to a record high on Monday in Pakistan, All Pakistan Sarafa Gems and Jewelers Association reported.
The price of 24 karat per tola gold increased by Rs8,100 and was traded all time high at Rs357,800 on Monday as compared to its sale at Rs349,700 on previous trading day.
The prices of 10 grams of 24 karat also increased by Rs6944 to Rs306,755 from Rs299,811.
The price of gold in the international market increased by $69 to $3,395 from $3,326, the Association reported.
Read More: Gold price hits record high on trade war woes
Gold price scaled a record peak, spurred by concerns over global economic growth amid the U.S.-Sino trade war, while a weaker dollar further boosted the rally.
U.S. gold futures firmed 1.8% to $3,386.50. The dollar index hit a three-year low, making gold more attractive for other currency holders.
“Fundamentally, markets are pricing in heightened geopolitical risks, driven by U.S. tariff tensions and stagflation concerns, while resilient central bank demand offers an added tailwind for prices as well,” said IG market strategist Yeap Jun Rong.
U.S. President Donald Trump announced “reciprocal tariffs” on dozens of countries on April 2, and while his administration paused levies for some countries, it has ratcheted its trade battle with China.
Gold, a highly valued precious metal, has maintained its significance for centuries and plays a vital role in the global economy.
Its value stems from its scarcity, durability, and widespread appeal. Frequently regarded as a safe-haven asset, gold is employed to preserve wealth during times of economic instability.
Central banks and investors maintain gold reserves to diversify their investment portfolios and protect against inflation and currency value fluctuations.
The price of gold depends on a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make gold rates escalate due to its safe-haven status.
As a yield-less asset, gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal.
