Gold prices climbed to record highs on Tuesday, driven by worsening geopolitical conditions and expectations of further interest rate cuts by the US Federal Reserve, lifting both global and domestic bullion markets to historic levels.
Prices of gold and silver surged globally and locally amid heightened tensions involving the United States, Venezuela and Iran, alongside ongoing geopolitical uncertainty, which has strengthened demand for safe-haven assets.
In the international bullion market, the price of gold rose for a second consecutive day, gaining $9 per ounce to reach a new all-time high of $4,595.
Following the global trend, gold prices in the local market also increased sharply. The price of gold per tola rose by Rs900 to reach Rs481,186, while the price of 10 grams increased by Rs771 to Rs413,118.
Silver prices also posted strong gains. The price of silver per tola rose by Rs180 to a new record of Rs9,075, while the price of 10 grams increased by Rs154 to Rs7,780.
Spot gold traded 0.1% lower at $4,588.43 per ounce as of 0947 GMT, following a record high of $4,629.94 in the previous session. US gold futures for February delivery slipped 0.4% to $4,597.50.
Elsewhere, spot silver gained 0.7% at $85.57 per ounce after hitting an all-time high of $86.22 on Monday. Spot platinum lost 0.5% to $2,332.40 per ounce after scaling a record peak of $2,478.50 on December 29. Palladium slid 1.1% to $1,822.37 per ounce.
Read: Gold hits record on global safe-haven rush
Earlier on Monday, gold prices in Pakistan surged to a fresh record, mirroring a sharp rally in international bullion markets as investors flocked to safe-haven assets amid escalating political and monetary uncertainty in the United States.
In the local market, the price of gold per tola jumped by Rs7,700 to reach an all-time high of Rs480,962, according to the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10-gram gold rose by Rs6,602 to Rs412,347.
Internationally, spot gold climbed 2.5% to $4,620.56 per ounce by 10:50 am ET, after touching a record peak of $4,627.27 earlier in the session. US gold futures for February delivery rose 2.9% to $4,631.30, according to Reuters. Silver also rallied strongly, setting a new record high above $85 per ounce.
Market participants attributed the rally to heightened uncertainty surrounding US monetary policy and political developments. Adnan Agar, Director at Interactive Commodities, said gold’s sustained rise was being driven by multiple factors, with the US Federal Reserve playing the most critical role.
Read more: Gold, silver extend rally to reach all-time highs
“The primary reason is the Fed. Markets are under pressure due to expectations of rate cuts, which are clearly favourable for gold and silver,” Agar said. He added that political uncertainty linked to the Trump administration and broader geopolitical risks were further fueling investor demand for precious metals.
Gold has now reached an all-time high of $4,627 per ounce and continues to trade just below that level, suggesting further upside if current conditions persist. Agar noted that silver has also broken its previous peak of $84, rising to as high as $85.73, and has already delivered a 16% return since the start of the year.
Meanwhile, the Pakistani rupee edged up Rs0.01, closing at 280.01 against the dollar, extending last week’s modest inter-bank gains.
