Gold Hits Record High as Safe-Haven Demand Grows
Gold prices continue to rise in both local and global markets, reaching new highs amid growing economic uncertainty.
International Market Update
In the international bullion market, gold prices increased by $1 per ounce, reaching $2,904. Spot gold touched a high of $2,942.70 per ounce during Asian trading hours before slightly retreating to $2,909.49 at 0916 GMT. This marks the eighth record high for gold in 2025, bringing the $3,000 milestone within reach.
Local Market Gold Prices
The All Pakistan Sarafa Association reported an increase in gold prices across the country:
- The price of gold per tola rose by Rs 100, reaching Rs 303,100.
- The price of 10 grams of gold climbed Rs 86, reaching Rs 259,859.
U.S. Tariffs and Market Reaction
The surge in gold prices is driven by safe-haven demand as U.S. President Donald Trump imposed new tariffs on steel and aluminum imports at a flat 25% rate with no exemptions. This move has raised concerns over a global trade war, pushing investors toward gold as a secure investment.
Investor Outlook and Federal Reserve Impact
Market analysts predict that gold may extend gains to $2,950 – $2,962 per ounce before reversing its trend. Investors are also monitoring:
- Federal Reserve Chair Jerome Powell’s testimony for insights on interest rates.
- U.S. inflation data, which could impact future Fed rate decisions.
A Reuters poll suggests the Federal Reserve may delay interest rate cuts, as higher tariffs could fuel U.S. inflation. Any unexpected remarks from Powell or a surprising CPI report could lead to a gold price correction.
Impact on Other Metals
While gold prices surged, other precious metals faced a decline:
- Silver fell 0.8% to $31.77 per ounce.
- Platinum dropped 0.9% to $985.20 per ounce.
- Palladium declined 1.4% to $969.25 per ounce.
Conclusion
With ongoing economic uncertainty, U.S. tariffs, and inflation concerns, gold remains a top safe-haven asset for investors. Experts believe the gold rally could continue if global trade tensions and inflation risks persist.
