Gold prices have surged to an all-time high, reaching $3,127.88 per ounce. Investors are turning to the precious metal as economic uncertainties and trade policies fuel market volatility. Since the start of 2025, gold has gained nearly 19%, continuing its upward trend from 2024, when it saw a 27% increase.
Steady Growth in Gold Value
Gold started 2025 at $2,620 per ounce and has added over $506 in value. Since January 20, when US President Donald Trump assumed office, the metal has climbed 15%. Analysts attribute this rise to global economic concerns and shifting trade dynamics.
Historically, gold prices increase during times of financial instability. As markets react to changing policies, investors seek safe-haven assets to protect their wealth. The latest surge indicates growing investor confidence in gold as a hedge against economic uncertainty.
Impact of US Trade Policies
The rise in gold prices follows President Trump’s announcement of new trade tariffs. Speaking aboard Air Force One, he confirmed that these tariffs would apply to all countries, not just select trading partners. This statement contradicts earlier expectations that only certain nations would face restrictions.
“You would start with all countries,” Trump said, reinforcing his tough stance on international trade.
The previous week, Trump had already imposed a 25% tariff on auto imports, escalating tensions in global markets. These moves align with his administration’s broader trade strategy, which seeks to address what he considers unfair trade practices.
Read: Gold Prices Hit Record Highs in Local and Global Markets
Investors Turn to Safe-Haven Assets
Market analysts believe that continued trade disputes and economic uncertainty are pushing investors toward gold. The metal has long been a preferred asset during turbulent times, as it retains value even when other investments decline.
With ongoing shifts in US trade policies and potential retaliatory actions from other countries, financial markets remain unpredictable. As a result, gold prices are expected to stay strong in the coming months.
Future Outlook
Experts predict that if trade tensions persist, gold could continue its upward trajectory. Many investors are closely watching policy changes and global market reactions to determine their next moves.
With uncertainty shaping global trade and economic policies, gold remains a reliable choice for those seeking stability. The recent price surge underscores its role as a key financial safeguard in uncertain times.
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