Gold prices in Pakistan surged to an all-time high on Wednesday, with the price of one tola crossing Rs500,000 for the first time in history, driven by record gains in the international bullion market.
According to market data, the price of one tola of gold rose by Rs12,700, taking it to a historic high of Rs506,362. Similarly, the price of 10 grams of gold increased by Rs10,888, reaching Rs434,123.
Global market situation
Gold prices have hit record levels globally amid rising political uncertainty and growing economic concerns.
On Wednesday, gold prices in the international market crossed $4,800 per ounce, marking the highest level ever. Increased demand for safe-haven assets and a weaker US dollar pushed prices higher.
Spot gold rose 1.2% to $4,821 per ounce, while during the session it touched a record $4,843 per ounce. Meanwhile, US gold futures for February delivery gained 1%, trading at $4,813 per ounce.
Market experts say investor confidence has been shaken due to recent statements by US President Donald Trump, including possible tariffs on European countries, strong remarks regarding control over Greenland, and criticism of NATO allies.
Trump recently stated there was “no turning back” on the Greenland issue and did not rule out the use of force, triggering anxiety across global financial markets.
Later, the US president softened his stance, saying a solution would be found in cooperation with NATO that satisfies all parties. However, European leaders reacted strongly. French President Emmanuel Macron stated that Europe would not bow to pressure or threats.
Analysts say investors are moving away from the US dollar and long-term bonds, shifting capital towards gold. The dollar remained near a three-week low against the euro and Swiss franc, while Asian stock markets continued to decline for the third consecutive day.