The gold price has surged to a record $3,004.86 per ounce, driven by growing economic uncertainty amid global trade tensions. The 14% increase since the start of 2025 is attributed to investors seeking safer assets during times of instability.
US President Donald Trump’s threats of tariffs on European Union and Chinese imports have fueled concerns about price inflation, leading businesses to pass extra costs onto consumers. This has driven investors to gold as a hedge against economic volatility.
Industry experts point to two key drivers behind the surge: uncertainty due to trade tensions and central banks’ increasing demand for gold. Victoria Hasler, head of fund research at Hargreaves Lansdown, notes that markets hate uncertainty, contributing to the high gold price.
Central banks have been buying up gold, with over 1,000 tonnes added to their reserves last year, according to World Gold Council figures. Experts believe this trend is likely to continue due to diversification efforts away from US dollars.
The current surge in gold prices follows similar peaks during key economic events, such as the global financial crisis in 2007 and the COVID-19 pandemic. Russell Mould, investment director at AJ Bell, sees an “era in which gold is really starting to shine” amid these factors.
Source: https://www.bbc.com/news/articles/cqjd90nk25yo