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Gold in Pakistan climbed to record highs on Wednesday, surpassing the Rs500,000 per tola threshold for the first time ever in the country, amid rising uncertainty in international financial markets.
Market data suggests the price of gold rose sharply by Rs12,700, taking it to Rs506,362 per tola.
Similarly, the price of 10 grammes of gold increased by Rs10,888 to settle at Rs444,123.
Adnan Agar, Director at Interactive Commodities, told Geo.tv gold prices have recorded a sharp increase over the past two days, with silver also trending higher, driven primarily by rising geopolitical uncertainty and sustained central bank demand.
He noted gold prices began climbing from Monday after remarks by US President Donald Trump over the weekend, in which he threatened to impose new tariffs on Greenland and Europe and reiterated his desire to acquire Greenland.
According to Agar, these statements have raised the possibility of diplomatic friction between the United States and Europe over Greenland, prompting investors to move towards safe-haven assets.
“If the Greenland issue is not resolved, it could escalate further and push gold prices even higher,” Agar said, adding that until clarity emerges, precious metal prices are likely to remain elevated.
Agar further said that beyond short-term geopolitical concerns, the primary driver behind gold’s sustained rally remains aggressive and consistent purchasing by central banks.
“This trend has been ongoing for nearly two years, but buying accelerated significantly in 2025 despite record-high prices,” he said, noting that, unlike past cycles, central banks have not paused purchases, even at all-time highs.
He explained that since Trump’s return to office, the global political and economic order has been in a state of continuous uncertainty, with Washington adopting confrontational positions toward traditional allies, including Mexico, Canada, Europe, and Venezuela.
Agar pointed to US pressure on Ukraine to accept a peace deal involving territorial concessions to Russia as another factor undermining global confidence in the United States.
“These developments are sending a message to the world that the US may no longer be a reliable partner, which could weaken the dollar’s role as a reserve currency,” he said.
As a result, Agar said gold has emerged as the only credible alternative to the US dollar for global trade and reserves, prompting central banks to reduce dollar holdings in favour of gold to hedge against inflation and currency devaluation.
The sharp rise in domestic prices came in line with trends in global markets, where precious metals hit fresh peaks as investors sought safety. Gold notched yet another record high, topping out at $4,888.41 an ounce in international trade, while silver touched $95.89 an ounce, underscoring strong demand for safe-haven precious metals.
Equities were mixed on Wednesday following a rough start to the week fuelled by Donald Trump’s Greenland-linked tariff threats, while the uncertainty rattling through trading floors saw safe-haven precious metals hit fresh record highs.
Markets have sunk globally this week, and Wall Street’s three main indexes tanked on Tuesday as they reopened after a long weekend.
Concerns that the Greenland crisis could grow saw precious metals, a go-to in times of turmoil, continue to hit new peaks. Gold topped out at $4,888.41 an ounce and silver touched $95.89, highlighting strong investor demand for assets viewed as protection during periods of instability.
The report added that eyes are now on Trump’s visit to the World Economic Forum in Davos later in the day, with traders closely monitoring developments as uncertainty continues to weigh on global markets.
— Additional input from AFP
