Gold prices have reached an all-time high of $3,004.86 per ounce, marking a 14% increase since the beginning of 2025. This surge is largely attributed to economic uncertainty stemming from the ongoing global trade war, with investors seeking gold as a safe-haven asset. The escalating tensions between the U.S. and its trading partners, particularly the European Union and China, have unsettled financial markets, leading to increased demand for gold as a hedge against inflation and economic instability.
A key driver of this price spike is the imposition of tariffs by the U.S. and retaliatory measures by other nations. Recently, President Trump threatened a 200% tariff on EU alcohol imports, responding to the EU’s proposed 50% tax on U.S. whiskey imports. Additionally, tariffs on Chinese imports have been raised to at least 20%. These measures have fueled concerns over rising consumer prices and broader economic disruption, pushing investors toward gold as a more stable asset.
Beyond trade policies, central banks have played a major role in driving gold demand, with global reserves increasing by over 1,000 tonnes for three consecutive years. Analysts suggest that central banks may be diversifying away from U.S. dollars, further boosting gold’s value. Historical trends indicate that gold prices often surge during economic crises, as seen during the 2008 financial crisis and the COVID-19 pandemic. With ongoing geopolitical tensions and economic instability, experts predict that gold prices may continue their upward trajectory.
