Investors seeking refuge from the turmoil caused by Donald Trump’s policies are driving gold prices to record highs. The market’s rally has gained momentum since the new administration took office in January, with gold Exchange-Traded Funds (ETFs) seeing significant inflows of $12.9 billion so far this year.
The surge in gold prices follows 27% growth in 2024 and a 14% gain since the start of 2025, reaching its latest record at $3,004.86 per ounce. While analysts argue that further inflows may not be enough to keep gold above the $3,000 mark, the market’s rally is being driven by investors seeking shelter from economic volatility.
European investors were initially drawn to gold ETFs, but US investors are now joining the trend, with retail investors becoming wary of stock markets after a recent sell-off. The number of people buying gold for the first time on online platforms has increased, with demand exceeding customer profit-taking by 0.2 tonnes.
Analysts say that Trump’s policies have triggered a retreat from US stocks, which historically attracted large amounts of investor cash, making gold a potential beneficiary in the short term. However, even this influx may not be enough to drive the gold price higher, given signs of an overbought market. To sustain prices above $3,000 per ounce, retail bar and coin demand must increase further, or central bank buying intensifies.
Source: https://www.reuters.com/markets/commodities/trump-driven-turbulence-draws-new-investors-into-gold-2025-03-14