Markets worldwide continue to slide due to concerns over President Donald Trump’s protectionist trade policies, and investors are flocking to gold, sending its price to another record high on Monday.
Trump’s latest round of tariffs is set to take effect on Wednesday, which the president has called “Liberation Day.”
Gold tends to see increased demand during times of uncertainty as investors look for safe havens for their assets. The recent rise in gold prices comes as Trump’s tariff policies have sparked a global trade war, which has rattled financial markets and could lead to inflationary pressures affecting families and businesses alike.
If current trends persist, analysts predict that the price of gold could continue its upward trajectory in the coming months. However, precious metals are volatile by nature, and the future remains uncertain.
Gold Price Update
On Monday, the price of New York spot gold hit a record $3,122.80 per troy ounce (31 grams), marking an increase of approximately $886, or 40%, compared to the same time last year.
Spot gold has surged by 19% since the beginning of 2025, according to data from FactSet. Meanwhile, the stock market has faced significant declines. The benchmark S&P 500 has dropped by 4.5% so far this year, with blue-chip stocks also losing ground.
Gold futures also reached a record high on Monday, nearing $3,157.40 an ounce in trading.
Why is Gold’s Price Rising?
The rise in gold prices is largely driven by economic uncertainty. When investors feel anxious about the future, they often turn to gold as a safe investment.
The biggest source of uncertainty stems from Trump’s escalating trade war. His fluctuating tariff announcements and retaliatory actions from U.S. allies have created confusion for both businesses and consumers. Economists warn that the resulting price increases could be passed on to U.S. households.
As a result, consumer confidence has taken a hit this year, further exacerbating the anxiety within the markets. Analysts have also noted that gold demand from central banks has been strong, amid ongoing geopolitical tensions like the wars in Gaza and Ukraine.
Is Investing in Gold a Good Idea?
Gold is often viewed as a “safe haven” investment. Advocates argue that it can help diversify and balance your portfolio, and it also has the potential to appreciate over time, providing a hedge against economic risks.
That said, experts caution against overly concentrating investments in any one asset. Some financial experts argue that gold may not always provide the inflation protection it is reputed to offer, and there may be more effective ways to hedge against potential losses, such as through derivative-based investments.
The Commodity Futures Trading Commission has warned about the risks associated with investing in gold, emphasizing that precious metals can be highly volatile. As demand for gold increases, the commission suggests that during times of economic instability, sellers tend to profit the most.
If you do choose to invest in gold, it is important to familiarize yourself with safe trading practices and be cautious of potential scams and counterfeits in the market.
