Gold prices rise reaching record highs

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Gold prices have surged both internationally and locally, with the domestic rate reaching a new record high.

Reports indicate that the price of gold in the global bullion market increased by $15, reaching $2,778 per ounce.

According to the All Pakistan Sarafa Jewellers Association, the price of gold per tola rose by Rs 1,600, setting a new peak at Rs 290,300. Similarly, the price per 10 grams climbed by Rs 1,372 to reach Rs 248,885.

Just a day earlier, gold prices in the global market had surged by $22 per ounce, while in local markets, the per tola price jumped by Rs 2,300.

On Thursday, gold prices continued to rise as investors sought safe-haven assets amid concerns over potential import tariffs by US President Donald Trump. Investors were also awaiting a key inflation report to assess the Federal Reserve’s monetary policy direction.

As of 1020 GMT, spot gold was up 0.7%, trading at $2,776.79 per ounce, while US gold futures climbed 0.8% to $2,791.70.

StoneX analyst Rhona O’Connell noted that while tariffs on gold in the US are highly unlikely, given its status as a reserve asset, risk managers are still taking precautions by moving metal into the country.

Meanwhile, London bullion market participants are rushing to borrow gold from central banks, which store reserves in London, following a surge in gold shipments to the US, according to sources familiar with the situation.

Although Trump has not specifically mentioned gold in his tariff plans, market traders remain concerned about potential risks, leading to increased gold transfers to New York.

Earlier this week, the White House confirmed that Trump plans to impose significant tariffs on Mexico and Canada starting Saturday, with potential levies on China also under consideration.

In a separate development, the Federal Reserve decided to keep interest rates steady on Wednesday. Fed Chair Jerome Powell emphasized that there would be no urgency in cutting rates again.

Investors are now looking ahead to the release of the US Personal Consumption Expenditures (PCE) price index report on Friday.

Silver prices also saw gains, with spot silver rising 0.8% to $31.05 per ounce. Ole Hansen, head of commodity strategy at Saxo Bank, noted that silver is strengthening against gold, particularly after the gold-silver ratio was once again rejected above 91. He added that the market perceives a higher risk of tariffs on silver imports compared to gold.

Other precious metals also saw positive movement, with platinum increasing by 1.1% to $956.79, and palladium climbing 1.8% to $979.45.

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