Amid mounting geopolitical tensions and growing economic uncertainties, gold prices have surged to historic levels globally and within Pakistan. On Monday, gold rose by Rs5,900 per tola, reaching an all-time high of Rs353,100 in Pakistan. Similarly, the international spot gold price climbed more than 2% to $3,377.29 per ounce, marking a strong upward momentum in the global gold market.
Safe-Haven Demand on the Rise
Analysts attribute this sharp rise to increased safe-haven demand as investors react to geopolitical instability, particularly Ukraine’s recent large-scale drone attack on Russian territories. Adnan Agar, Director of Interactive Commodities, said, “The spike in demand is primarily driven by geopolitical tensions, especially with Ukraine’s ongoing offensive.”
When uncertainty looms, investors often turn to gold as a reliable store of value. With rising global instability, including fears of prolonged conflicts and inflation, demand for gold continues to escalate.
Dollar Weakness Amplifies Rally
The weakening US dollar has further fueled gold’s rise, making the metal more attractive to investors using other currencies. As the dollar dips, commodities priced in dollars like gold become cheaper for non-dollar buyers, boosting demand globally.
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Market Outlook and Technical Levels
Technical analysts suggest gold may soon test new resistance levels. If the bullish momentum continues, prices could push toward $3,400, $3,420, or even $3,440 per ounce soon.
The SPDR Gold Shares ETF (GLD), which mirrors the movement of gold prices, also trades higher at $311.67, reflecting investor confidence in continued gains.
Conclusion
With ongoing geopolitical unrest and a weakening dollar, gold is once again asserting its role as a safe-haven asset. The current rally shows no signs of slowing, especially as global markets brace for continued instability.
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