Gold prices in Pakistan skyrocketed on Friday, marking a historic milestone as they reached an all-time high amid soaring global rates and escalating trade tensions between the United States and China.

According to the All Pakistan Sarafa Gems and Jewellers Association, the price of one tola of gold surged by a massive Rs14,100, touching a new record of Rs456,900. Similarly, the rate for 10 grams of 24-karat gold jumped by Rs12,089, reaching an unprecedented Rs391,718 in the local market.

The surge mirrors the global trend, where gold prices have been on a steady climb due to rising investor demand for safe-haven assets. In the international market, spot gold rose by 0.8% to $4,359.31 per ounce as of 0615 GMT, after hitting another record high of $4,378.69 earlier in the day. This marks gold’s best weekly performance in over 17 years.

Meanwhile, silver prices in Pakistan also followed suit, with the per tola rate increasing by Rs167 to settle at Rs5,504, another historic peak.

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A day earlier, gold prices had already shown signs of strong upward movement, increasing by Rs1,900 per tola to reach Rs442,800, while 10 grams of 24-karat gold rose by Rs1,629 to Rs379,629.

Why are gold prices rising?

Analysts attribute the surge to growing fears over the stability of U.S. regional banks and intensifying trade tensions between major economies. As uncertainty grips global markets, investors are pulling out of riskier assets and turning to gold — a traditional safe haven that tends to perform well in times of economic turbulence.

Additionally, expectations of potential interest rate cuts by central banks around the world have further boosted the precious metal’s appeal. Lower interest rates make non-yielding assets like gold more attractive to investors seeking stability amid volatile market conditions.