LONDON: Gold surpassed $3,000 for the first time on Friday as US President Donald Trump’s trade wars boost the safe-haven asset, while stock markets bounced on hopes US lawmakers will avert a government shutdown.
In Pakistan, gold prices soared to a new record high, rising by Rs4,700 per tola in the local market, driven by a significant increase in the international market. The latest surge has pushed gold rates to unprecedented levels, both domestically and globally.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola has now reached Rs314,000, marking a historic milestone. Similarly, the price of 10-gram gold increased by Rs4,030, bringing it to Rs269,204.
In the international market, gold prices surged by $46, reaching $2,988 per ounce as investors continued to seek safe-haven assets amid growing economic uncertainty and geopolitical tensions. The local gold market remains adjusted with a premium of $20 over international prices.
Gold, a safe haven in times of uncertainty, rose as much as $3,004 an ounce before paring back gains later in the day to trade under $3,000.
The precious metal was “boosted on increased haven demand amid trade war risks and recent stock market volatility”, said Fawad Razaqzada, analyst at City Index and Forex[dot]com. In the latest salvo, Trump threatened to impose 200 per cent tariffs on wine, champagne and other alcoholic beverages from European Union countries.
His threat came after the bloc’s planned levies on American-made whiskey and other products in retaliation to US levies on steel and aluminium. Trump said he would not row back on the metals duties, nor plans for sweeping tariffs on countries worldwide due to kick on April 2. Wall Street has been hammered in recent sessions by trade tensions, with the S&P 500 slipping into a correction Thursday, having fallen more than 10 per cent from its recent peak -- a record high touched just last month.
Silver prices also witnessed a sharp rise, with silver per tola increasing by Rs90 to Rs3,530, while the price of 10-gram silver rose by Rs77 to Rs3,026.
Experts believe that unless international economic conditions stabilise, gold prices could continue their upward trajectory in the coming weeks. Local traders and jewellers, however, express concerns over declining consumer purchasing power, as the soaring prices make gold less affordable for consumers.