Gold hits record on global safe-haven rush

Jumps by Rs7,700 to reach Rs480,962/tola; rupee inches up

KARACHI:

Gold prices in Pakistan surged to a fresh record on Monday, 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.

"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.