Gold prices surged to an all-time high of $3,500 per ounce on Tuesday, driven by growing market anxiety over political interference in U.S. monetary policy, specifically concerns that former President Donald Trump may attempt to dismiss Federal Reserve Chair Jerome Powell.
The precious metal rose as much as 2.2% in global trading before slightly retreating as investors took profits. Safe-haven assets such as gold, the Swiss franc, and the Japanese yen rallied sharply after Trump reiterated calls for immediate interest rate cuts—a move seen as a threat to the Fed’s independence. The dollar, in turn, slumped to its weakest level since 2023.
In Pakistan, gold prices mirrored the international spike, soaring to a historic high. One tola of gold was priced at Rs363,700 after a steep single-day increase of Rs5,900, according to the All-Pakistan Gems and Jewellers Sarafa Association. The price of 10 grams of gold also reached a new peak of Rs311,814. This followed Monday’s sharp Rs8,100 jump per tola that had pushed the rate to Rs357,800.
The domestic market has now seen gold appreciate by Rs91,100 per tola since the beginning of the year, rising from Rs272,600 on December 30, 2024—marking a 33% increase in 2025 alone. Meanwhile, silver prices remained stable at Rs3,441 per tola.
“Gold’s rapid ascent this year tells me that markets have less confidence in the US than ever,” said Lee Liang Le, an analyst at Kallanish Index Services. “The ‘Trump Trade’ has essentially morphed into a ‘sell America’ strategy,” she added.
Globally, gold has surged by nearly a third this year amid escalating trade tensions and diminishing faith in dollar-based assets. This bullish trend has been further supported by strong inflows into bullion-backed exchange-traded funds (ETFs) and robust central bank purchases.
“This rally demonstrates a growing interest in moving away from dollar-based holdings and into safer alternatives,” noted Kamakshya Trivedi, Head of Global FX and Emerging Markets Strategy at Goldman Sachs, in a recent TV interview.
Several financial institutions have turned increasingly bullish on gold. Goldman Sachs has projected that gold prices could reach $4,000 an ounce by mid-2026, while analysts at Jefferies labeled gold as possibly “the only true safe-haven asset remaining” amid growing skepticism toward U.S. assets, including government bonds.
However, analysts caution that the current rally may face temporary pauses. Gold’s 14-day relative strength index (RSI) has climbed above 78—well beyond the 70 mark that typically signals an overbought asset.
At 10:37 a.m. in London, spot gold was trading at $3,454.88 per ounce, up 0.9% from the previous session but slightly off its peak. Meanwhile, silver prices dipped, while palladium and platinum saw modest gains. The Bloomberg Dollar Index held steady.
Gold’s rally has also fueled gains in mining stocks. In Hong Kong, shares of Zijin Mining Group Co.—a major Chinese metals producer—jumped over 6% during intraday trading, extending their year-to-date gain to over 25%.
