According to Michael Widmer, head of metals research at Bank of America, the recent gold rally has been “almost exclusively driven” by tariff-related fears and economic uncertainty.
His team projects gold prices could reach $3,500 per ounce within the next 18 months. Though gold has steadily appreciated for years, the current surge intensified as Trump promised additional tariffs on what he’s calling “Liberation Day.”
Financial advisors note that while gold can be volatile, it typically appreciates during periods of global instability, offering tangible security compared to less material financial instruments.
Despite this traditional “fear trade” appeal, experts caution that gold’s value can fluctuate significantly like other investments.