The seemingly never-ending joyride of gold prices continues, climbing to a whopping Rs336,800 per tola in what has been dubbed as the highest single-day spike over the past few months.

 

According to reports, the surge in domestic prices is a result of a “sharp rally” in global markets as international factors continue to drive the price of the precious metal upward.

 

Gold is becoming the go-to safe haven investment as the US-China trade war escalates, reaching new peaks. Reports indicate that China has imposed a staggering 84 percent tariff on all US goods entering the country. However, this has not sit well with the Trump administration that continues to wage the trade war.

 

The US has responded to China’s tariffs by levying additional tariffs of their own, bringing the total tariff rate on Chinese goods up to an extortionate 145 percent. Independent analysts predict that these developments do not have any positive ending for either the US or China.

 

The trade war has resulted in a bloodbath across global capital markets as stock markets took a tumble amid shrinking investor confidence because of uncertainty.

 

Analysts have outlined how recent corrections in global gold rates are unprecedented, far exceeding the normal corrections that usually sit in the $20 to $30 range. Domestic gold prices have also witnessed a Rs16,000 surge in two waves.

 

Information from the All Pakistan Sarafa Gems and Jewellers Association (APSGJA) indicates that gold rates initially surged by Rs7,800 per tola. While this price hike translates into a healthy return for speculators holding gold, the precious metal witnessed a second, even larger, spike of Rs8,000.

 

Data from a reputable database indicates that gold rates have surged by $594.29 per troy ounce since the beginning of 2025. This marks a 22.65 percent rise in the price of a troy ounce of gold in the aforementioned period. For reference, one troy ounce is equivalent to approximately 2.44 tolas. 

 

As of reporting, the price of gold across various trading platforms stood at approximately $3,213 per troy ounce. Many believe that the price of gold could continue to surge if the US and China do not reach an amicable solution. 

 

In the event that ties between the two economic giants normalise, investors may pull funds out of gold, and park them into capital markets again. With people looking to purchase gold for the next marriage season, many would be interested in seeing the price of the commodity fall.

 

Recent reports have also suggested that gold shops have seen lower traffic as the extortionately high prices have pushed it out of reach for many. The high prices have caused a loss to both small jewelry store owners and those interested in getting wedding jewelry made.