Gold Prices Soar to Record Highs

Gold continued its record-breaking rally, hitting $5,560 per ounce on Thursday, extending its gains amid a weakening US dollar and ongoing economic and geopolitical uncertainty. The yellow metal has now reached record highs for nine straight sessions, reflecting strong safe-haven demand.

Analysts point to the volatile US political environment and concerns over the Federal Reserve’s independence as key drivers of investor interest in gold. ANZ analyst Soni Kumari noted:

“Gold prices are rising on safe-haven demand because of the strange geopolitical situation and the political situation in the U.S., which is not looking great.”



 

Factors Driving Gold Prices

Several factors are fueling this historic rally:

  1. US Dollar Weakness – The dollar remains weak, pushing investors toward gold.

  2. Safe-Haven Demand – Geopolitical risks, including tensions between the US and Iran, are increasing demand.

  3. Central Bank Buying – Governments and institutions continue to purchase gold.

  4. ETF Inflows – Exchange-traded funds remain a major channel for investor buying.

Edward Meir from Marex explained:

“Growing U.S. debt and uncertainty created by signs that the global trade system is splintering are leading investors to pile into gold.”


 

Gold Market Trends in 2026

  • Gold jumped past $5,000 per ounce earlier this week.

  • January 2026 alone saw prices rise by $1,000.

  • The metal has gained over 27% in 2026 following a 64% surge in 2025.

IG Market analyst Tony Sycamore said:

“Although the parabolic nature of the rally suggests a pullback is not far away, the underlying fundamentals remain supportive, positioning dips as attractive buying opportunities.”

 


Impact on Investors in Pakistan

For Pakistani investors, this surge means:

  • Jewelry Prices: Gold jewelry costs may rise in line with global spot prices.

  • Investment Opportunities: Gold remains an attractive option for hedging against currency fluctuations and inflation.

  • Market Awareness: Local traders in Karachi, Lahore, and Islamabad report increased demand as consumers and investors react to international trends.

Conclusion

Gold continues to shine as a safe-haven asset, and investors in Pakistan are closely watching global developments to make informed decisions. With geopolitical tensions and US economic uncertainty persisting, gold may continue to see upward momentum in the coming weeks.

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