Gold prices skyrocket in Pakistan as global trade war sparks inflation
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In response to the US imposing tariffs ranging from 10 to 25 percent on imports from China, Europe, and Mexico, these countries have retaliated by imposing their own tariffs on US imports, triggering a new wave of global inflation.
Amidst this inflationary trend, a growing shift towards gold investment has been observed worldwide, as investors look to protect their capital. This surge in demand has driven gold prices to unprecedented levels, both globally and in Pakistan.
Over the past week, the price of gold per ounce rose by $74, reaching a new record high of $2,984. As a result, gold prices in local markets also saw a significant increase, with the price of one tola rising by Rs7,700.
This increase has pushed the price of one tola of gold to a historic high of Rs313,700, while the price of 10 grams of gold has surged by Rs6,602, reaching Rs268,947.
In addition, silver prices also saw a rise during the week, with the price of one tola increasing by Rs142 to Rs3,530, and the price of 10 grams rising by Rs122 to Rs3,026.
In the midst of this new global trade war, countries such as Russia, China, and India, along with others, are converting their foreign exchange reserves from dollars into gold. This shift comes from concerns that the strengthening of the dollar could lead to the devaluation of their own currencies.
Several countries are selling off their dollar reserves to purchase gold in an effort to reduce the dollar's influence on their economies, while some influential nations are also planning to introduce a new global currency as an alternative to the dollar.
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