Gold prices in the global market soared to a record-breaking $4,000 per ounce, continuing a powerful rally driven by economic uncertainty, fears of a U.S. government shutdown, and falling interest rate expectations.
For the first time ever, gold futures for December delivery traded at $4,016 per ounce, reflecting a significant shift in investor sentiment. This milestone marks a 52% surge in gold prices in 2025 alone, following a 27% increase in 2024, according to market analysts.
Investors Turn to Gold as Safe-Haven Asset
Analysts attribute the rise to multiple global stress factors. These include a fragile U.S. economy, ongoing geopolitical tensions, and a weakening U.S. dollar, all of which have pushed investors toward gold — traditionally seen as a safe and stable store of value in uncertain times.
“The ongoing instability in financial markets, particularly worries about the U.S. fiscal outlook and potential shutdown, is making gold a go-to asset,” said one financial expert.
Lower Interest Rate Outlook Boosts Precious Metals
Another major factor is the growing belief that central banks, including the U.S. Federal Reserve, may lower interest rates in the coming months to support slowing economies. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, making them more attractive to investors.
In light of this, global demand for gold has surged across both institutional and retail segments, adding further upward pressure on prices.
Financial strategists are advising investors to monitor the situation closely, as continued volatility could keep gold on an upward trajectory well into the end of the year.
GOLD RATES IN PAKISTAN
Today, the 24K gold rate in Pakistan soared to around Rs 386,500 per tola, while 10 grams of 24K gold is trading at Rs 331,361. The 22K variant stands at approximately Rs 354,625 per tola. The sharp rise is driven by surging global gold prices, a weak Pakistani rupee, and strong domestic demand.
