In a dramatic turn of events, gold prices in Pakistan shattered records on Friday, soaring by Rs10,000 in a single day to reach an all-time high of Rs338,800 per tola, All-Pakistan Gems and Jewellers Sarafa Association reports unique trends in gem and jewelry market. The meteoric rise didn’t stop there—10-gram gold surged by Rs8,573, settling at Rs290,466, leaving investors and consumers stunned. Meanwhile, silver prices held steady at Rs3,234 per tola, offering no relief to those seeking alternative investments.
The local market’s frenzy mirrors a global surge in gold’s value, driven by escalating economic uncertainties. Spot gold rose 0.6% to $3,192.79/oz globally, while US gold futures surged 2% to $3,237.50, reflecting strong market demand.A weakening US dollar, which slumped nearly 1% against major currencies, further fueled gold’s allure as a safe-haven asset, drawing investors rattled by volatile markets.
At the heart of this unprecedented rally lies the intensifying US-China trade war, which has sent shockwaves through global economies. President Trump’s decision to slap a staggering 145% tariff on Chinese imports triggered an immediate counterstrike from Beijing, with China imposing matching tariff hikes. This tit-for-tat escalation has sparked widespread fears of a looming global economic slowdown, prompting investors to flock to gold as a shield against uncertainty.
In Pakistan, the soaring gold prices have left consumers and jewelers grappling with the fallout. “It’s unprecedented,” said a Karachi-based jeweler, noting a sharp drop in retail demand as buyers hesitate at the new price levels. For many, gold remains a cultural and financial cornerstone, but the sudden spike has forced families to rethink wedding plans and investments. Analysts warn that if trade tensions persist, prices could climb further, squeezing middle-class households already battling inflation.
Globally, the outlook remains turbulent. Economists caution that prolonged trade disputes could disrupt supply chains and dampen growth, cementing gold’s status as a go-to asset. While silver prices in Pakistan stayed unchanged, experts predict volatility in other commodities if the trade war deepens.
As the world watches this economic chess game unfold, gold’s dazzling ascent underscores its timeless role as a refuge in troubled times. For now, Pakistanis brace for the ripple effects of a market caught in the crossfire of global powers.
