Gold prices in Sri Lanka and global markets have skyrocketed to unprecedented levels, with global gold reaching an all-time high of $ 3,500 per ounce, a surge driven by a weakening US dollar, escalating US-China trade tensions, and heightened investor demand for safe-haven assets.

The sharp uptick follows the latest tariff announcement by US President Donald Trump, intensifying market volatility and accelerating gold’s rally.

In Sri Lanka, the local gold market has mirrored this upward trajectory, with 22-carat gold hitting a record Rs. 255,000 per pound and 24-carat gold surging to Rs. 277,000, marking a 3.4% single-day increase from Monday’s (21) closing rates.

According to GOLDCeylon Gold News Network, this represents the steepest intraday price jump in over a decade, reflecting heightened domestic demand amid economic uncertainty.

National Gem and Jewellery Authority (NGJA) Assistant Director Indika Bandara attributes the surge to three key factors: The US dollar’s depreciation, geopolitical instability, and strategic investor shifts toward gold as a hedge against inflation.

With Sri Lanka’s gold prices closely tracking global trends, analysts warn that further escalation in trade disputes or currency fluctuations could push valuations even higher, presenting both risks and opportunities for traders, jewellers, and institutional investors.

The rapid appreciation underscores gold’s growing dominance as a preferred asset class in volatile markets, with Sri Lankan buyers and exporters bracing for sustained price pressures.

As the precious metal continues its record-breaking climb, market watchers anticipate increased central bank gold acquisitions and tighter liquidity in the domestic bullion trade, reshaping Sri Lanka’s jewellery and investment sectors in the coming months.