Gold prices in Pakistan surged to an all-time high of Rs 309,500 per tola on Monday, driven by increased demand for safe-haven assets amid geopolitical tensions and economic uncertainties.
Global Economic Factors Driving Gold Demand
- Investors are shifting away from U.S. bonds, citing concerns over persistent inflation and fiscal instability.
- The U.S. national debt has soared to 123% of GDP, raising fears of long-term inflationary pressures.
- Central banks continue to be major buyers of gold, accumulating 1,045 tonnes in 2024, marking the third consecutive year of purchases exceeding 1,000 tonnes.
Rise of Alternative Safe-Haven Investments
- Alongside gold, Bitcoin ETFs have also gained traction, with $4.5 billion in net inflows last month.
- The assets under management (AUM) for Bitcoin ETFs have now surpassed $125 billion, setting a new record.
As economic uncertainties persist, the demand for safe-haven assets like gold and Bitcoin continues to grow, pushing prices to new highs.
