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Gold prices soared past the $3,300 mark this week, smashing yet another record as investors brace for the fallout from President Donald Trump’s latest tariff threats against China. With the dollar weakening and global uncertainty intensifying, the precious metal is emerging as the go-to safe haven — and some experts say this rally is just getting started.
Spot gold surged more than 3% to touch an all-time high of $3,332.89 per ounce Wednesday afternoon, while U.S. gold futures closed at $3,324.50. That’s nearly $700 higher than where gold started the year, marking a stunning 27% year-to-date gain and cementing gold’s status as one of the best-performing assets of 2025.
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Trump’s Tariff Moves Spark Market Jitters
This latest rally was fueled by President Trump’s announcement on Tuesday ordering an investigation into tariffs on all critical mineral imports, a bold move aimed squarely at China, the world's largest processor of rare earth elements. The policy escalation rattled markets, triggered a rush to safe-haven assets like gold, and sent the U.S. dollar plunging near a three-year low.
Trump’s trade-first stance and tough rhetoric have long made Wall Street uneasy. But for gold buyers, his moves often signal opportunity.
“Gold remains heavily supported by a broadly weaker dollar, uncertainty around tariff announcements, and fears about a global recession,” said Lukman Otunuga, senior research analyst at FXTM.
Momentum Builds as Central Banks and ETFs Pile In
Beyond political headlines, there are powerful fundamental forces fueling gold’s momentum.
Gold-backed ETFs attracted 226.5 tons worth $21.1 billion in Q1 2025, the strongest inflow in three years.
China increased its gold reserves for the fifth straight month in March, as central banks continue hedging against currency and geopolitical risks.
Major financial institutions are taking notice. Goldman Sachs has raised its forecast for gold three times this year, now projecting the metal could reach $4,000/oz by mid-2026.
And sentiment among fund managers is clearly shifting. In a recent Bank of America global survey, 42% of respondents said gold would be the best-performing asset class of 2025, up sharply from 23% just one month prior.
Gold Booms Under Trump's #TariffWar— Is $4,000 Next?
A Perfect Storm for a Precious Metal Boom
Federal Reserve Chair Jerome Powell added fuel to the fire Wednesday by acknowledging that U.S. economic growth appears to be slowing — with consumer spending softening, trade flows disrupted by pre-tariff stockpiling, and overall sentiment deteriorating.
As fears of a global recession grow and the dollar struggles, gold is benefiting from what some analysts are calling a “perfect storm.”
“The rally has become a bit unhinged,” said Ole Hansen of Saxo Bank. “However, we’ve seen time and again that pullbacks are shallow. Buyers are waiting.”
“The gold market is thriving in this period of uncertainty,” said Evy Hambro of BlackRock. “But the foundations are very tangible and real.”
Where Do We Go From Here?
With the $3,300 barrier shattered, bulls are already eyeing the next psychological levels. Some are pointing to $3,400 and $3,500 as short-term targets, while long-term forecasts are reaching even higher.
“$4,000 is absolutely possible,” said Rick Kanda, managing director at The Gold Bullion Company. “Given the economic pressures we’re seeing, it may even be probable.”
The combination of Trump’s aggressive trade posture, a slowing economy, and institutional demand is setting the stage for what could be an extended bull market in precious metals.
For Americans seeking to protect their wealth, the message is clear: gold is back — and this time, it may be just getting started.
