Why investors are in shock amid gold’s skyrocketing rise
File photo
File photo
(Web d): In the global market, gold climbed by $53 to $4,018 per ounce. Analysts link the surge to a weakening dollar, geopolitical tensions, and growing demand for safe-haven assets.

Investors, however, are divided — some view gold as protection from uncertainty, while others fear that such rapid gains may trigger future corrections.

In Pakistan, gold prices witnessed a sudden and steep increase as the rate of 24-karat gold surged by Rs5,300 per tola, reaching Rs424,162 compared to Rs418,862 on the previous trading day.

The sharp jump has raised investor concerns over possible market instability and inflationary pressure.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of 10 grams of 24-karat gold rose by Rs4,544 to Rs363,650, while 10 grams of 22-karat gold increased to Rs333,357. This consistent upward movement has made small investors more cautious about entering the market.

Silver followed gold’s lead, with its price per tola rising by Rs158 to Rs5,192 and 10 grams increasing by Rs136 to Rs4,451. Globally, silver gained $1.58, reaching $49.30 per ounce.

The current surge in gold and silver prices reflects deep global unease. Investors are increasingly moving their funds into precious metals as the dollar weakens and political tensions rise. However, the fast pace of price hikes is causing anxiety among small investors who worry about market volatility and possible profit losses if prices fall suddenly.

Experts suggest monitoring global economic signals closely. While gold may continue to rise if uncertainty persists, a sudden drop in international demand or strengthening of the dollar could reverse these gains quickly.

Investor Concerns Highlighted:

Fear of sudden market correction after rapid gold surge

Inflationary worries due to continuous price hikes

Uncertainty about timing investments amid volatile global conditions

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