Islamabad, May 5, 2025 – Gold prices surged dramatically on Monday, reflecting a global rush toward safe-haven assets as economic and geopolitical uncertainties intensify. In international markets, the price of gold per ounce climbed by $82, reaching an unprecedented $3,320. Pakistan’s domestic market mirrored this trend, with the per tola price jumping Rs8,000 to Rs352,500 and the 10-gram rate rising Rs6,900 to Rs302,150.
The sharp increase is driven by a combination of global market volatility and growing investor skepticism about traditional financial systems. Analysts point to escalating trade tensions and unpredictable monetary policies as key catalysts. A recent speech by a prominent global leader, hinting at aggressive trade measures, sparked widespread market panic, leading to a sell-off in equities and a weakened US dollar. Surprisingly, investors also shunned US Treasuries, long considered a safe bet, signaling a historic shift in market behavior.
Instead, gold has emerged as the preferred refuge for investors and sovereign nations alike. Countries such as China, India, and Germany have ramped up their gold purchases, prioritizing physical reserves to hedge against potential financial disruptions. This strategic stockpiling, distinct from seasonal or festive demand, underscores fears of economic instability and the growing risk of financial systems being weaponized in geopolitical conflicts.
In Pakistan, the rising gold prices have sparked mixed reactions. While investors and jewelers see opportunity in the rally, consumers are grappling with the soaring costs of gold jewelry ahead of the wedding season. Local traders report a surge in demand for gold bars and coins, as households seek to protect their savings from inflation and currency fluctuations.
Market experts predict that gold prices may continue their upward trajectory in the near term, as global uncertainties show no signs of abating. “Gold is no longer just a commodity; it’s a geopolitical asset,” said a Karachi-based financial analyst. “As long as trade wars and economic distrust persist, gold will remain in the spotlight.”
Investors are advised to monitor global economic developments closely, as further policy shifts could drive even greater volatility in the precious metals market.
