Gold prices are climbing again in both international and local markets, driven by ongoing global economic uncertainty. In the international bullion market, gold per ounce increased by $10, reaching $2,910. Meanwhile, in local markets, gold per tola rose by Rs 1,000, bringing the new price to Rs 304,200. This trend reflects growing demand for gold as a safe-haven asset amid turbulent economic conditions.
Local Market Trends
In local markets, gold prices continue to surge. The price per 10 grams increased by Rs 857 to Rs 260,802. These increases come on the heels of yesterday’s jump, when gold per tola rose by Rs 1,700, and the price per 10 grams climbed by Rs 1,458. Gold’s consistent rise has made it a focal point for investors looking to hedge against inflation and currency fluctuations.
International Market Movement
Globally, spot gold rose 0.6% to $2,913.79 per ounce as of early morning trading, still below its recent record high of $2,942.70. U.S. gold futures also advanced by 0.9% to $2,925.50. Investors remain focused on the economic policies of U.S. President Donald Trump, whose tariff plans have intensified concerns about global trade stability and supply chain disruptions.
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Economic Factors Driving Gold Prices
Experts point to global uncertainty and central bank buying as major factors behind gold’s recent gains. Nikos Tzabouras, a senior financial writer, highlighted that Trump’s aggressive trade policies have shaken global markets, making gold a preferred choice for risk-averse investors. Commerzbank analysts added that central bank purchases of gold are likely to continue, offering further price support.
U.S. Federal Reserve’s Role
The market’s attention has now shifted to the upcoming release of the U.S. Federal Reserve’s January meeting minutes. Investors are looking for clues about the central bank’s interest rate strategy. Analyst Ricardo Evangelista noted that expectations of rate cuts in 2025 have strengthened following disappointing U.S. retail sales data. Lower interest rates typically boost gold prices, as they reduce the opportunity cost of holding the non-yielding asset.
Broader Precious Metal Trends
While gold prices are surging, other precious metals are experiencing mixed performance. Spot silver dropped 0.9% to $32.50 per ounce. In contrast, platinum and palladium both recorded gains, rising 0.9% and 1.6% to $985.20 and $978.00, respectively. These fluctuations reflect broader uncertainty across global markets.
Outlook for Gold
Gold’s upward momentum is likely to persist as geopolitical and economic uncertainties dominate the global landscape. Central bank buying, inflation concerns, and the possibility of further interest rate cuts continue to support the metal’s appeal. As the world waits for more clarity on U.S. trade and monetary policies, gold remains a critical asset for investors seeking stability in uncertain times.
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