ISLAMABAD – Gold prices in Pakistan registered a massive increase on Friday to reach all-time high amid rising rates in global market due to trade tension between the US and China.
The price of per tola gold recorded an increase of whooping Rs14,100 to hit fresh high of Rs456,900.
The price of 10-gram gold surged by Rs12,089 in local market where it has also reached historic high of Rs391,718.
In international market, gold climbed above $4,300 an ounce and was poised for its best week in over 17 years, as ongoing trade tension has driven investors to safe-haven metal.
Spot gold increase 0.8% to $4,359.31 per ounce, as of 0615 GMT, after scaling another record high of $4,378.69 earlier in the day.
Meanwhile, the price of per tola silver moved up by Rs167 to settle at historic high of Rs5,504 in Pakistan.
A day earlier, the price of per tola gold increased by Rs 1,900 to R 442,800, up from R 440,900 on the previous trading day, according to the All Pakistan Sarafa Gems and Jewellers Association.
Likewise, the price of 10 grams of 24 karat gold rose by Rs1,629 to Rs379,629 from Rs378,000,
Why is Gold Demand Increasing?
The rise in gold prices can be attributed to growing concerns surrounding the stability of US. regional banks, escalating global trade tensions, and increasing expectations of rate cuts by central banks.
As signs of vulnerability in US banks mount, investors are seeking refuge in gold, a traditional safe-haven asset. Additionally, the ongoing trade disputes between major economies have heightened uncertainties in global markets, further driving investors away from riskier assets.
The anticipation of central banks easing interest rates to stimulate economic growth has also fueled demand for gold, pushing its prices higher as it becomes more attractive in uncertain times.
