Gold prices in Pakistan soared to an unprecedented peak on Monday, hitting Rs 309,500 per tola, fueled by increased demand for safe-haven assets.
Amid geopolitical tensions, investors are increasingly betting on neutral assets. Attention is shifting away from the U.S. bond, out of concerns of its obstinate inflation and fiscal sustainability. The U.S. national debt has ballooned to 123% of its GDP, a level that is regarded as inflationary and unsustainable.
Central banks reemerge as the largest net buyers of gold. In 2024 alone, central banks acquired 1,045 tonnes of gold, marking 3 consecutive years with over 1,000 tonnes purchased. Bitcoin ETFs, another neutral assets investment, saw $4.5bn net inflows last month with assets under management (AUM) officially surpassing $125bn for the first time in history.
