Gold prices hit record high amid economic uncertainty, fueled by investor anxiety and Trump's tariffs

From Yahoo Finance: 2025-04-22 11:20:00

Gold prices are hitting record highs as economic uncertainty grows worldwide. The current rally is fueled by anxious investors seeking safe havens amidst new tariffs from President Donald Trump. Analysts predict gold prices could climb even higher.

The price of New York spot gold reached a record $3,424.24 per troy ounce, up over 30% since the start of 2025. This surge comes as the stock market has fallen. Gold futures also hit a record, briefly surpassing $3,500 before dropping back.

Investors are turning to gold due to economic turmoil and uncertainty stemming from Trump’s trade wars. Consumer confidence and global economic outlooks are worsening, with the IMF predicting slower growth for the U.S. and China due to tariffs.

Trump’s threats against Federal Reserve Chair Jerome Powell have added to market volatility. Analysts point to strong gold demand from central banks and ongoing geopolitical tensions as driving factors for the precious metal’s value.

Advocates see gold as a safe haven investment to diversify portfolios and mitigate risks, while critics caution against relying solely on gold. The Commodity Futures Trade Commission warns of gold’s volatility and advises educating oneself on safe trading practices.

Read more: Gold soars to a new high as economic uncertainty deepens. Here’s what to know