Gold prices on Tuesday shattered records globally and in Pakistan, rising above $3,500 an ounce for the first time in history before retreating slightly as investors locked in profits.
On Tuesday, gold surged by as much as 2.2% to briefly touch $3,500 per ounce. The rally came as fears grew that US President Donald Trump might fire Federal Reserve Chair Jerome Powell — a move that rattled global markets.
Investors rushed to safe-haven assets like gold, the Japanese yen, and the Swiss franc, while US stocks, bonds, and the dollar took a hit.
According to Bloomberg, these worries, in addition to Trump's constant pushing of the Fed to cut interest rates, forced the dollar to its lowest since 2023. Amidst such uncertainty, gold demonstrated its strength as a reliable hedge.
Pakistan follows global trend
Back home, Pakistan mirrored the international momentum. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of one tola of gold soared by Rs5,900 on Tuesday, hitting an all-time high of Rs363,700. The 10-gram rate also jumped to Rs311,814.
This follows Monday’s staggering Rs8,100 per tola hike, when gold hit Rs357,800. Overall, gold has gained Rs91,100 per tola since December 30, 2024 — a 33% increase in just over three months.
Analysts say the surge reflects global unease with U.S. financial stability. “Markets are moving from the ‘Trump Trade’ to a ‘Sell America’ narrative,” said Lee Liang Le from Kallanish Index Services.
Global investors eye $4,000 target
Gold has been on a consistent upward trajectory in 2025, fueled by trade tensions, growing distrust in dollar-backed assets, and rising demand from central banks and ETFs. Each month in 2025 has produced rising prices, with major lenders such as Goldman Sachs now forecasting gold potentially reaching $4,000 an ounce by mid-2026.
Even so, experts caution the metal may experience short-term cooling off, as technical indicators indicate it's somewhat overbought.
Until this morning in London, spot gold had traded at $3,454.88, marginally below its highest level but still solid. Meanwhile, silver in Pakistan remained unchanged at Rs3,441 per tola, whereas platinum and palladium had risen across the globe.
