Gold prices have surged 28% since Trump’s election victory, reaching record highs of $3,245.28 an ounce following his April 2nd “Liberation Day” tariff announcements. While serving its traditional role as a safe haven amid economic uncertainty and declining confidence in U.S. Treasuries, gold’s future remains tied to Trump’s unpredictable trade policies.
If tariffs continue or increase, analysts predict further gold rallies, with Goldman Sachs setting a 2025 target of $3,700 an ounce. However, any trade compromises, especially with China, could weaken gold’s outlook. Currently, demand is mixed—strong in China (with spot premiums at $39/oz) but declining in India where high prices are deterring buyers.
Gold’s strength rests on three pillars: investor flight to safety, central bank purchases, and Chinese demand. Yet despite being a safe haven, gold remains vulnerable to the same market volatility affecting other assets during this period of trade uncertainty.