The economic uncertainty caused by Trump's tariff assault has been a major driver of gold's price with 'safe-haven' buying pushing the precious metal to an unprecedented $3170.65 per troy ounce[1]. Between April 1st, 2024, and April 1st, 2025, gold has risen $902.5 per troy ounce, equating to a 40.2% gain. The S&P 500 and FTSE 100 have posted more modest gains of 7.2% and 8.8%, respectively, over the same period, while the US Dollar Index (DXY), which measures the dollar's strength against a basket of major currencies and typically moves inversely to gold, has declined nearly 6% since Trump's inauguration on January 20th, 2025.
Central banks remain key players in gold's ascent. The World Gold Council's Gold Demand Trends: Full Year 2024 report said that central bank buying had exceeded 1,000t for the third consecutive year, accelerating sharply in Q4. It also highlighted in March that central banks remained bullish on bullion in January 2025 and had reported 18t of net purchases at the start of the year.
Paul Williams, managing director of Solomon Global, a company specialising in the secure delivery of physical gold bars and coins for private ownership, stated in March that gold at $3,500 by summer was within the realms of possibility. Goldman Sachs, in a report released on March 26th, upped its year-end gold price outlook and noted that in a tail-risk scenario, gold prices could even exceed $4,200 per troy ounce by the end of 2025.
"Gold's soaring value is a stark barometer of global unease, reflecting deep economical and geopolitical tensions," said Paul Williams, MD of Solomon Global. "With no relief in sight for the forces driving this surge, any significant near-term retreat seems unlikely. Even at record levels, gold demand remains robust because investors recognise the precious metal's ongoing role as a hedge against inflation, geopolitical instability, and financial market volatility."
Source: Solomon Global
