Gold prices hit record high on Wednesday as investors flocked to the safe-haven asset amid a tariff war between the United States and China.
In Pakistan, gold price per tola gained massive Rs5,300 to clock in at record Rs299,600 on Wednesday.
Similarly, 10-gram gold was sold at Rs256,859 after it recorded an increase of Rs4,158, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
The price surge could be attributed to the fears of a new trade war between the United States and China after Beijing slapped tariffs on US imports in a response to new US duties on Chinese goods, Reuters reported.
US President Donald Trump ordered sweeping tariffs on goods from Mexico, Canada and China, demanding they stanch the flow of fentanyl – and illegal immigrants in the case of Canada and Mexico – into the United States, kicking off a trade war that could dent global growth and reignite inflation.
On Monday, Trump paused tariffs on Mexico for one month after last-minute talks – but there was no breakthrough yet in negotiations with Canada.
Meanwhile, the international rate of gold also reached at a record high on Wednesday. As per APGJSA, the rate was at $2,868 per ounce (with a premium of $20) and was up by $53 during the day.
On Tuesday, gold price per tola in Pakistan increased by Rs1,900 to settle at the then-all-time high of Rs294,300.
On the other hand, silver price increased by Rs36 to clock in at Rs3,350 per tola.
American Dollar Exchange Rate