US stock markets ended their worst quarter in years due to President Trump’s chaotic tariff policies, but investors are turning to gold as a safe haven. The price of gold hit an all-time high this week, rising over 18% from the start of the year and surpassing $3,177 per ounce.
Tariffs imposed by Trump have created massive uncertainty for businesses and investors, fueling global tensions between the US and its largest trading partners, and stoking fears about a US recession. The president plans to roll out more tariffs on Wednesday, dubbed “Liberation Day,” further exacerbating market volatility.
Analysts attribute the surge in gold prices to tariffs-related fears and uncertainty. Michael Widmer, head of metals research at Bank of America, projects that gold prices will reach $3,500 per ounce over the next 18 months.
While gold is often seen as a safe haven, it can be volatile. Investors should be aware of its limitations, including no dividend or interest payments, and physical storage challenges.
Lee Baker, certified financial planner, advises against buying gold solely based on price increases, warning that it may lead to disappointment. Instead, diversifying investments across asset classes is crucial for a balanced portfolio.
Source: https://www.npr.org/2025/04/01/nx-s1-5347985/gold-prices-record-highs-tariffs-trump