Gold prices soared on Monday, fueled by strong demand for safe-haven assets. Internationally and locally, markets saw significant gains. Domestically, gold per tola jumped Rs4,000 to a record Rs342,500, while 10 grams rose Rs3,429 to Rs293,638, mirroring the global bullish trend and investor confidence in gold’s stability.
On the international stage, gold prices in the bullion market rose sharply by $40 per ounce, hitting $3,241. Spot gold advanced to $3,239.18 per ounce, rebounding from losses in the prior session, while US gold futures saw a notable 1.7% increase, closing at $3,242.60. The surge in gold prices underscores ongoing market volatility and a growing preference for precious metals as a hedge against economic uncertainties.
The rally in gold was accompanied by gains in other precious metals. Spot silver rose by 0.8% to $32.52 per ounce, while platinum edged up by 0.4% to $992.06. Palladium, however, remained unchanged at $961.22 per ounce, showing stability amid the broader market upswing.
Analysts attribute the sustained rise in gold prices to a combination of factors, including geopolitical tensions, inflationary pressures, and uncertainty surrounding global economic policies. Investors are increasingly turning to gold to safeguard their portfolios, particularly as central banks and financial institutions signal cautious outlooks. The metal’s appeal as a reliable store of value has been further bolstered by fluctuating currency markets and concerns over equity valuations.
Locally, the sharp increase in gold prices has sparked mixed reactions. While investors and traders see opportunities in the rising market, consumers purchasing gold for personal use, such as jewelry, face higher costs. Jewelers report a cautious approach among buyers, with many opting to delay purchases in hopes of price corrections. However, market experts predict that gold’s upward momentum may persist in the near term, driven by global demand and macroeconomic trends.
As gold continues to shine as a preferred asset, its performance will likely remain a key indicator of investor sentiment and economic stability. With prices showing no immediate signs of cooling, both local and global markets are poised for further developments in the precious metals sector.
