Gold prices surge again in local, international markets

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Gold prices have increased once again in both global and local markets today.

In the international bullion market, the price of gold per ounce rose by $10, reaching a new global price of $2,910.

On the other hand, in local markets, the price of gold per tola increased by Rs 1,000, bringing the new price to Rs 304,200.

Similarly, the price of gold per 10 grams also rose by Rs 857, reaching a new price of Rs 260,802.

It is worth noting that yesterday, the price of gold per ounce in the global market increased by $17, reaching the level of $2,900, while in the local market, the price of gold per tola rose by Rs 1,700, and the price per 10 grams rose by Rs 1,458.

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around U.S. President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

U.S. gold futures added 0.9% to $2,925.50.

A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes U.S. products.

"Gold continues to benefit from the uncertainty surrounding the U.S. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the U.S. Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing U.S. retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.